When a real estate novice makes an initial foray into the world of buying their first Palm Beach Gardens house, the first task is pinpointing how much they can afford. First-time buyers are especially prone to one beginner’s mistake: it’s easy to overlook the bagful of ancillary costs that are part of any home purchase. These peripheral charges carry percentages that may look minor—but taken together, are anything but.
Surprises Costs Can Play Peek-a-boo with First Palm Beach Gardens House Buyers
Whether you call them “closing costs” or “settlement fees,” including them in preliminary budgeting is mandatory. That’s why government-sponsored Freddie Mac makes the list of included elements part of its “Understanding Costs” web educational site. Nine are named—and although they include some that apply only when outside financing is relevant (and all are not usually part of any single purchase), it’s useful to become familiar with what they entail:
- Government recording costs
- Appraisal fees
- Credit report fees
- Lender origination fees
- Title services
- Tax service fees
- Survey fees
- Attorney fees
- Underwriting fees
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Since Freddie puts their cost as “between 2% and 5% of your purchase price,” including them in first back-of-the-envelope budget estimates is a fundamental part of identifying which properties you will be able to afford. Freddie’s 2%-5% range leaves a lot of leeway—but don’t worry. I can help you nail down a tighter estimate for which of those costs are likely to apply in buying your first Palm Beach Gardens house.
Call me anytime at (561) 316-6800 to get started.
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