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With low mortgage rates and tax credits many are looking into buying a new home. Real estate prices are still incredibly low and the fact that tax credits exist for new homeowners make buying a house an attractive option. While these factors may make buying a house seem viable, many new buyers are shocked at how much money it can actually take to do so. There are lots of little, unexpected or unknown costs that can add up along the way.

Sadly there are many closing costs and you can’t dodge them at all. There are literally fees for everything from underwriting fees, recording fees and insurance fees. It is good for you to ask lenders up front about fees because they are not obligated to tell you about them. In fact, closing costs are usually 2 to 3 percent of your loan amount. Yeah, that’s a nice chunk of change. Good thing rates are so low.

While they are not required, home inspections can be very helpful. A home inspector can point out areas of your potential home that need repair or that can be hazardous. Why is this advantageous you may ask? For starters, the seller may not be aware of these areas and so you wouldn’t know either. Secondly, if problems do arise then you can use them as a potential negotiating tool with your real estate agent. A home inspection can cost several hundred dollars though. For a low mortgage rate come to refinance mortgage today.

Don’t forget about appraisal fees. Before buying a house, lenders require an appraiser to place a value on the house. This lets them know how much of a loan you will need. Of course a real estate appraiser costs money. It used to be automatically figured into the closing cost, often now the money is required up front and is usually costs around $350 to $400 dollars.

Everybody knows about property taxes. Simply put, all states have property taxes, some more than others. The more expensive your property, the more you pay. Some places, like parts of California have notoriously high property taxes just based on the value of the land, for example beach front property or Beverly Hills.

Insurance can also cost you a pretty penny. Just because you don’t live in an area with natural disasters doesn’t mean you don’t need home insurance. There is always a risk of fire or black mold or some other unexpected problem. Ice, heavy snows or hail can just as easily damage a house as much as an earthquake. Experts suggest you figure your monthly mortgage with the term “PITI” in mind. It means principle, interest, taxes and insurance. Insurance usually runs around .5 to 1 percent of your mortgage loan amount.

There are also other potential costs as well such as pest inspections, moving costs and homeowners associations to name a few. That makes it all the more imperative for you to take advantage of these low rates and credits while you can.

Thinking of refinancing? Come to refinancing for a great rate.

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