Lee Morof's Real Estate Blog

Are you about to become a first-time home buyer? If so, there’s a lot to get excited about. You’ll soon be a home owner, able to customize and improve your living space as you see fit.

Of course, buying a home is an investment unlike any other. To get the best deal on your home, you’ll need to be diligent. Let’s have a look at some of the hidden costs you may uncover when buying your first home.

#1: The Home Inspection (And What It Finds)

A major step before buying any home is the inspection. A licensed inspector will go over the home from top to bottom, looking for current or future issues. The inspection itself isn’t very costly. But any unresolved issues that come up may lead to expensive problems later.

If possible, try to ensure that the seller pays for any necessary repairs. When you take possession of the home, it should be in top condition.

#2: Taxes And Fees You’ve Never Even Heard Of

You already know about the major taxes, such as sales taxes that apply to a home’s sale price. Or property taxes, charged by local governments each year and based on your home’s assessed value. But depending on where you live, there may be a whole host of other taxes and fees involved. Many of which you’ve never even heard of!

For example, you may be subject to a Land Transfer Tax or Property Purchase Tax. These are taxes charged when a property changes hands. If you’re taking out a mortgage loan, the lender may require you to pay land survey or appraisal fees. These costs help the lender to ensure the risk involved with the mortgage is appropriate.

#3: Insurance, Insurance And More Insurance

Finally, don’t forget the cost of insurance. On top of regular home insurance, you may need mortgage insurance, title insurance, extra life insurance and more. It’s worth booking some time with an insurance professional to find out what kind of coverage you will need.

These are three of the possible costs involved in closing the purchase of a new home. For more information about closing costs and new homes in your neighborhood, contact your local real estate agent. We have the data and insight to help you make the best decision.

Last week’s economic news included readings on Case-Shiller Home Prices Indices, new and pending home sales. Weekly readings on new jobless claims and average mortgage rates were also released. Case-Shiller reported that home prices rose by 0.20 percent from January to February with a year-over- year growth rate of 5.80 percent.

Western cities continued to post the fastest growth rates for home prices with Seattle, Washington topping annual home price growth rates at 12.20 percent; Portland, Oregon followed with a year-over-year home price growth rate of 9.70 percent. Dallas, Texas posted the third fastest growth rate for home prices with year-over-year growth in home prices at 8.80 percent. Dallas replaced Denver, Colorado for third place in the 20-City Home Price Index. 15 of 20 cities tracked in the Case-Shiller 20-City Home Price Index posted higher year-over-year gains in February than for January 2017.

New Home Sales Rise as Pending Home Sales Dip

New home sales rose to 621,000 sales in March; analysts expected a reading of 580,000 new homes sold on a seasonally adjusted annual basis based on January’s reading of 587,000 new home sales. Sales of new homes are important due to months of high demand for homes coupled with low inventories of homes for sale. Sales of new homes can indicate future readings on builder confidence and housing starts, but there are no definite connections between new home sales, builder confidence in housing market conditions and housing starts.

Pending home sales dipped in March with a month-to-month reading of -0.80 percent as compared to February’s seasonally adjusted annual reading of 5.50 percent. Pending sales are home sales for which sales contracts are signed but have not been closed. Pending home sales are an indicator of future completed sales and can be impacted by factors including fluctuating mortgage rates and regulatory influences on mortgage lending and mortgage approval requirements.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week. The average rate for a 30-year fixed rate mortgage was six basis points higher at 4.03 percent. The average rate for a 15-year fixed rate mortgage was four basis points higher at 3.27 percent. Mortgage rates for a 5/1 adjustable rate mortgage averaged 3.12 percent which was two basis points higher than for the previous week. Discount points averaged 0.50 percent for a 30-year fixed rate mortgage and averaged 0.40 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages

New jobless claims rose to 257,000 last week as compared to expectations of 245,000 new claims filed and the prior week’s reading of 243,000. Analysts said that the spike appeared to be localized in New York State and would likely resolve soon.

What‘s Ahead

This week’s economic readings include ADP and Non-Farm Payrolls, national unemployment rate and readings on inflation. The Federal Open Market Committee of the Fed will issue its customary post-meeting announcement on Wednesday; this announcement is expected to reveal the Fed’s next move on interest rates. Weekly readings on new jobless claims and mortgage rates will also be released.