Understanding the Real Costs of Buying a Home in Mass

You visit a real estate website and are alarmed at the list prices for houses in the neighborhood you are interested in. You would be right to also think of the other costs that you would have to find to purchase such a house. Even at an attractive price, you would still need to factor in the additional costs for home ownership. This you must do as you cannot later rely on your family and friends to bail you out once you put your money down on a house. What are the costs that buyers must be prepared for, and what are the seller’s obligations in completing a house purchasing transaction?

Boston Apartments
Boston Apartments

A quick look online at homes for sale Cambridge MA, for example, will immediately show you condos and single family homes that you can choose from. What you do not see immediately are the additional charges that you must face when purchasing such homes. As a buyer you will need to pay for the cost of appraising the house, producing a credit report, and fees for tax service. You will also need to foot the bill for a plot plan, Municipal Lien Certificate, and flood certification. The charges do not end there as you will also have to pay the cost for recording the mortgage that is payable to the relevant government agency, insurance (which is the lender’s policy for the title), overnight courier charges, and the lender’s attorney fees. In the State of Massachusetts these fees range from a low of $15.00 (for Tax Service) to a high of just under $1,600 (for the insurance).

Boston Apartments
Boston Apartments

Still think you can stomach these costs? Do you think you would pay less if you chose from among cheap Boston apartments? Well, brace yourself for there is more. You will, depending on the lender, also face various miscellaneous fees for preparation of the loan documents, processing of the loan itself, funding charges, and underwriting costs. This is where you will need to carefully shop around for the best lender whose fees are lower. You will also notice that many of these fees, particularly the municipal and tax fees, are standardized and there is little difference across lenders. If you choose to use a personal attorney, which is actually recommended that you do, be prepared to pay significantly for that service well. You would definitely need to negotiate the best amount with your attorney if you want to ease the cost burden. Some lenders may also use your attorney as their representative in the transaction, which works out at a lower cost to you.

Boston Apartments
Boston Apartments

Your transaction is not complete without the seller’s costs being settled. The seller must clear their Transfer Tax (Excise Stamp Duty); fees for recording the mortgage, which is really a mortgage discharge; the Agents Realtors commission, which is a percentage of the sale price for the house; courier or overnight fees; wire transfer costs where necessary; their attorney’s costs; and securing a mortgage discharge. Certainly the complete cost for purchasing a new house through mortgage can be extensive and you must be prepared to fully pay these charges. The buyer and seller will also face municipal charges for sewer, water, home owners association charges, taxes, fuel charges, monthly condominium fees that are calculated and pro-rated at the time of closing.

Boston Apartments
Boston Apartments

Please contact http://www.tazar.com If you looking for a Boston apartments for sale or if your looking for a Boston real estate jobs that has the potential to make over 150k+ your 1st year. Thank you for reading and please let us know if you like to read more about homes for sale Brighton MA.

Please note the content is not intended to be, legal or investment advice. You should consult a licensed attorney or realtor for advice regarding your individual situation.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s