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6 Hidden Costs That Sneak Up on First-Time Homebuyers

By Mike in Buying Tips with 0 Comments

There is more to buying a condo than just paying the mortgage. When looking at condos for sale in downtown San Diego, don’t overlook these hidden costs.

1. Inspection

It’s always a good idea to have an inspection done before moving forward with the purchase. Even a condo inspection can set you back several hundred dollars, and it’s typically paid out of the potential buyer’s pocket.

2. Appraisal

Before a lender gives you a mortgage, you have to have the condo appraised. This typically runs between $350 and $400 and will ultimately determine how much money the bank is willing to give you.

3. Closing

When you sign your closing documents, be prepared to fork over a few thousand. Closing costs include processing fees, title insurance fees, and underwriting fees among others. In general, the cost is 2 to 3 percent of the mortgage amount.

4. Furniture

It might sound silly, but if you want all new furniture for your new condo or you need new furniture because yours doesn’t fit, it can easily set you back a few thousand dollars, especially when you add in the small items like lamps, end tables, or art.

5. Condo Insurance and HOAs

On top of a mortgage, you will also be responsible for condo insurance, which covers the inside of your condo of loft in downtown San Diego, as well as HOA fees (these cover the maintenance costs of common areas like gyms and pools onsite), which can add hundreds of dollars to a mortgage monthly.

6. Repairs

Once you buy, you no longer have a landlord to call for help. Make sure you’ve got enough in savings to cover any unexpected costs or start an emergency repair fund specifically for condo repairs.

Working with an experienced downtown San Diego real estate agent can help you feel as prepared as possible for the costs and responsibilities of condo ownership. Learn more and find an agent who can represent you during your search by calling (619) 649-0368 today. ')}