Deciding to buy a home is an exciting time in your life. But it’s crucial to be prepared financially; there are many fees associated with home ownership, and knowing what they are can help you plan your budget. Lawrence Realty Inc., a family-owned real estate agency located in Red Wing, MN, can help you get all the information you need.
They explain a few of the most common fees associated with buying a home:
- Down Payment: A down payment is money for a home that is paid upfront. The more money you include in the down payment, the lower your monthly mortgage payment will be. Generally, a down payment is 3% to 5% of the sales price, but it can be higher or lower.
- Escrow Account: This is an account opened by a lender to hold money for the two parties and ensure each carries out their end of the transaction. It’s also used for paying certain fees for a house after its purchase. In addition to the mortgage, you pay a fee to the escrow account that goes towards property taxes and insurance after you buy a home.
- Home Inspection: If you are purchasing an older house, an inspection is highly recommended. Inspectors will check for structural damage, foundation abnormalities, mold, and pests.
- Moving Fees: The actual moving process is an additional expense to consider. You need to calculate the fees for a moving truck and movers, as well as the distance between your old and new house. Since different moving companies have varied procedures, always ask about specific policies on weight, amount of boxes, and hourly charges.
To learn more about the fees required when you buy a home, contact the team at Lawrence Realty Inc. at (651) 388-4745. With 69 years of experience in the Minnesota and Western Wisconsin regions, the local realtors will guide you through the journey of becoming a homeowner. To browse through their real estate listings and search for your dream house, visit their website.