What’s the true cost of buying a home?
When you shop for clothes or groceries, you can usually rely on the price tag as a fairly accurate predictor of what you’ll be paying in the checkout line. With real estate, what you see as the bottom line at first is rarely — if ever — what you ultimately pay. In fact, your new home comes with a never-ending invoice of expenses that can add up extraordinarily fast.
The hidden costs of ownership can be crippling if you’re not prepared. Here’s what you need to know in order to avoid the financial pitfalls.
1. Loan Origination Fee
Loan officers don’t determine your eligibility for free. Your mortgage company may charge somewhere between 0.5–1.0 percent of your total loan amount to cover administrative work…