Whether you're looking to buy your first home or trading up to a larger one, there are many costs—on top of the purchase price—that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you're not informed and prepared.

Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation; however it's better to know about them ahead of time so you can budget properly.

Remember, buying a home is a major milestone. Whether it's your first, second or 10th home, there are many important details to address during the process. The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.

Read through the following checklist to make sure you're budgeting properly for your next move.

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1. 1. Appraisal Fee
   Your lending institution may request an appraisal of the property which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 to $ 300.

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2. 2. Property Taxes
   Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.

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3. 3. Survey Fee
   When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $700 to $1,000.

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4. 4. Property Insurance
   Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured, as it protects their investment on the loan.

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5. 5. Service Charges
   Any new utility services that you hook up, such as telephone or cable, may require an installation fee.

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6. 6. Legal Fees
   Even the simplest of home purchases should have a lawyer involved to review all paperwork. Shop around, as rates vary greatly depending on the complexity of the issues and the experience of the lawyer.

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7. 7. Mortgage Loan Insurance Fee
   Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% to 3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.

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8. 8. Mortgage Brokers Fee
   A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.

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9. 9. Moving Costs
   The cost for a professional mover can cost you in the range of $50 to $100/hour for a van and three movers, and during peak demand seasons, rates can increase by 10% to 20% or higher.

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10. 10. Maintenance Fees
    Condos charge monthly fees for common area maintenance such as groundskeeping and carpet cleaning in hallways. Costs will vary depending on the building.

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11. 11. Water Quality and Quality Certification
    If the home you purchased is serviced by a well, you should consider having your water checked by local experts. Where you live determines whether or not a fee is charged to certify the quantity and quality of the water.

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12. 12. Local Improvements
    If the town you live in has made local improvements (such as the addition of sewers or sidewalks), it could impact a property’s taxes by thousands of dollars.

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13. 13. Land Transfer Tax
    This tax is applied whenever property changes hands, and the amount that is applied can vary.

When shopping for your home, you'll discover that most homes on the market are re-sales. Yet, one out of four homebuyers purchases a new home. Both new homes and resales offer advantages. Before you make a decision, let’s compare these points.

New Homes

• Offer innovative use of space and style
• Greater energy efficiency
• A choice of options and upgrades
• Everything is new and modern

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Existing Homes

• On the average they are less expensive
• Often they are in established neighborhoods with mature landscaping
• Homes have already settled, eliminating possible problems that arise from this happening after the purchase of home

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As you can see, there are advantages to both. Most people consider both new and existing homes before they decide to purchase. Should you be thinking about buying a new house, here are 10 points to consider before you visit your first model home.

Get in Touch with Your Agent
Before you visit your first model home, sit down with your agent and do your homework. You'll want to be prepared so that you can determine a comfortable price range for your new home.

1. 1. Determine a Comfortable Price Range
   If you own a home, you'll first need to know the net proceeds from its sale in order to determine how much cash you'll have to work with. Don't simply estimate this but carefully calculate every possible selling cost. If you're a first-time buyer, you'll need to first qualify your income. Determine the size of your down payment, then work out a monthly debt load so you can determine a comfortable price range.

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2. 2. Sellers' Agents Versus Buyers' Agents
   Here's a good point to remember. The sales agent in the model home represents the builder, not you. They are known as sellers' agents. As a buyer you can work with a buyers' agent at no additional cost. It's his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection, so that you get the best value for your money.

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3. 3. A Builder for All Reasons
   Like all tradesmen, builders vary in their fields of expertise. For example there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction and after move-in. Determine your own specific needs or preferences then shop around for a builder that will best address your requirements.

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4. 4. Get the Facts About Your Builder
   Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get "spec sheets" on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.

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5. 5. Check Out the Neighborhood
   
   • Learn as much as you can about the community.
   • Discover what amenities it has to offer.
   • Investigate if financial reserves have been set aside to build or replace major amenities like schools or community roads.
   • Find out from local land-use officials what else is planned or could be constructed in the area, especially where vacant land is applicable.
   • Review the rules for the homeowner's association, or find out if one will be set up.
   • Think of how you will be affected by commuting routes and times.

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6. 6. Choosing Options and Upgrades
   The less expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. Options are items the builder installs during construction, such as adding usable space like a sunroom or a powder room. These features can add the most to the resale value of your home.
   
   Upgrading means selecting quality above the "builder standard" in such things as carpeting, ceramics, detailing, kitchen fixtures, and appliances. Be sure to take advantage of builder incentives that offer free upgrades or credit off the sale price. Remember, you can add a deck, finished basement, or landscaping later and sometimes for less money.

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7. 7. Negotiations
   Often buyers don't realize that there may be room for negotiating price, upgrades, or options. For example, you have some scope for negotiating with the builder if she or he has a completed a home but hasn't sold it. Also some "premium lots" are priced higher and are sometimes saved to be sold last. Keep in mind that typically, all lots cost the builder the same, so be sure to enquire about lot pricing. Builders may offer discounts or special financing to help close a sale.

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8. 8. Be Sure the Contract Works in Your Favor
   When spelling out the particulars of an agreement with your builder, ensure you protect yourself by having safeguards written into the agreement, such as:
   • Placing your deposit in escrow
   • Detailing your upgrades
   • Allowing you access to the construction site to check on progress
   • A 30-day advance notice of the closing date.
   • An explanation of what the fine print means in the warranties of the builder and manufacturer

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9. 9. Financing—What's Best For You?
   Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. However, because "home loan" lending is highly competitive, you have many financing choices other than those being offered by the builder. Shop around for everything, from rates to lender fees. Appraisals, inspections, surveys, attorneys, and closing fees can vary as well.

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10. 10. Just Because It's New … That Doesn't Mean it's Perfect
    Yes it's new and typically it's built with modern materials that are durable, low maintenance, stronger, quieter, and safer. But because nothing is perfect, even if it's new, consider hiring a reputable, licensed home inspector. Then create a builder "punch list" from what you've learned to address any problems before closing. Consider budgeting for items to be modified or added later on. Many new homebuyers use a real estate agent to help them negotiate the best price and terms with the builder.

"Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can literally cost or save you thousands of dollars and years of expense."

Mortgage regulations have changed significantly over the last few years making your options wider than ever. Subtle changes in the way you approach mortgage shopping and even the small differences in the way you structure your mortgage can literally cost or save you thousands of dollars and years of expense.

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Get the Right Information
Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you inform yourself about the factors involved.

Industry research has revealed six common mistakes that most homebuyers make when mortgage shopping, and they can have a significant impact on the outcome of this critical negotiation. If handled correctly, these issues could result in a mortgage that will cost you less over a shorter period of time.

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6 Things You Must Know Before Obtaining a Mortgage
Before you commit your hard earned dollars to monthly mortgage payments, consider these six issues. Effective consideration of these important areas can make your payments work much harder for you.

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1. 1. You can, and should, get pre-approved for a mortgage before you go looking for a home
   Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Your local lending institution can provide you with written pre-approval for you at no cost and no obligation, and it can be done quite easily over the phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application and a certificate, which guarantees you a mortgage to the specified level when you find the home you’re looking for.

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2. 2. Know your budget
   When you discuss mortgage pre-approval with your lending institution, find out what level you qualify for and also pre-assess for yourself what monthly dollar amount you feel comfortable committing to. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By working back and forth with your lending institution to determine what this monthly amount is, and what value of home this translates into at today’s rates, you won’t waste time looking at homes that are not in your price range.

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3. 3. Think about your long term goals and expected situation to determine the type of mortgage that will best suit your needs
   There are a number of questions you should be asking yourself before you commit to a certain type of mortgage: How long do you think you will own this home? What direction are interest rates going in and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can afford to pay to your mortgage? The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.

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4. 4. Make sure you understand what prepayment privileges and payment frequency options are available to you
   More frequent payments (for example weekly or biweekly) can literally shave years off your mortgage. By simply structuring your payments so that they come out more frequently, it will significantly lessen the amount of interest that you will be charged over the term.
   
   For the same reason, authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and could shorten your payment term considerably.
   
   These two payment options can cut years off your mortgage and save you thousands of dollars in interest. However, not every mortgage has these pre-payment privileges built in, so make sure you ask the proper questions.

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5. 5. Ask if your mortgage is both portable and/or assumable
   A portable mortgage, where available, is one that you can carry with you when you buy your next home and avoid paying any discharge penalties. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home.
   
   An assumable mortgage is one that the buyer for your home can take over when you move to your next home. This can be a very powerful tool at the negotiating table, making it much easier and more desirable for a buyer to buy your home, and it saves you any discharge penalties.

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6. 6. You should seriously consider dealing with a mortgage expert
   Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make a significant difference in the cost and effectiveness of the mortgage you obtain. For example they can make the process faster thereby avoiding costly delays. Typically there is no cost or obligation to inquire.

This important report discusses the nine most common and costly homebuyer traps, how to identify them, and what you can do to avoid them.

1. 1. Bidding Blindly
   What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal? If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.

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2. 2. Buying the Wrong Home
   What are you looking for in a home? A simple enough question, but the answer can be quite complex. More often than not, buyers have been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing, and then use it as a yardstick to measure every home you look at.

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3. 3. Unclear Title
   Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases, or the like.

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4. 4. Inaccurate Survey
   As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.

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5. 5. Undisclosed Fix-Ups
   Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.

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6. 6. Not Getting Mortgage Pre-approval
   Pre-approval is fast, easy, and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

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7. 7. Contract Misses
   If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

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8. 8. Hidden Costs
   Make sure you identify and uncover all costs—large and small—far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the subtotal fees such as loan disbursement charges, underwriting fees, etc. Understand these in advance by having your lender project total charges for you in writing.

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9. 9. Rushing the Closing
   Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.