Home For Sale: Your Best Choices Now
Transfer tax, notary fees, notional rental value, property tax. Do you have no idea what these terms should mean, but are you planning to buy a house? Then it may be wise to read this article carefully. This is how you discover these and other hidden costs that come with buying a house. When you are going for the Winston Salem NC homes for sale then surely you will be having the best deals with them.
When buying a house you have to take into account additional costs. Because you can borrow a maximum of 100% of the purchase amount from your house, you have to pay the additional costs from your own pocket. That is why it is very important that you know exactly what these costs are and whether you can pay them or not.
Advice and brokerage costs
When you buy a house, you need a mortgage. Mortgage advisors can arrange this for you, but you will have to pay for this. These costs are called consultancy and brokerage costs.
Before you buy a house, you can have a structural inspection carried out. This of course costs money, but can still be very useful. In this way you discover structural errors on time and you can perhaps use this again in the negotiations.
Bank guarantee costs
If you want to buy a house, the seller wants certainty that you can actually pay for the house. That is why the buyer asks for a deposit. This is approximately 10 percent of the purchase price of the house. If the purchase continues, the deposit will be deducted from the total purchase price. So you do not have to pay the ten percent of the purchase price that you have already paid.
If you cannot pay this deposit with your own money, you can request a bank guarantee from the bank. This means that the bank guarantees the amount if you do not meet your obligations. You have to pay the bank for this. You pay around 1 percent of the amount that the bank must guarantee.
A simple example for clarification: you buy a house for 200,000 euros. The deposit would then be 20,000 euros. If you cannot pay the deposit, request a bank guarantee. You pay the bank around 200 euros for this.
A buying broker helps you with the viewing, the bidding process and the signing of the purchase agreement. Of course, there are costs attached to this help: brokerage fees.
National Mortgage Guarantee
If the house you buy is cheaper than the average house price, you can apply for a National Mortgage Guarantee (NHG). This means that NHG helps when you can no longer pay your mortgage. For this you pay 1 percent of the purchase price of the house. This seems like a lot, but you will soon have earned it back. For a house with NHG, you get an interest discount on the mortgage.
When you buy a house, it is legally required to do this through a notary. The notary takes care of the notarial deed. Herein the purchase of your new house is recorded. The mortgage loan is also recorded by the notary. How much you pay for this can vary greatly per notary.