Five Hidden Costs When Purchasing a Chula Vista Home

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Before you begin meeting with Chula Vista realtors, talking budgets, touring homes and making any further decisions about your future real estate purchase, it’s imperative that you consider the hidden costs of buying a new home. Whether this is a new construction project or just new to you, there will inevitably be some fees and expenditures that you weren’t expecting. It’s better to be prepared so you can plan accordingly and only look at homes that will truly fit within your budget. These are the five most common hidden costs you need to consider.

Down Payment – The actual amount needed for a down payment is often a surprise. With an FHA mortgage, buyers can put down as little as 3.5% of the purchase price, but there will be an additional 1% interest added to the monthly payments. In most cases, buyers must come up with at least 5-10% of the purchase price, but putting down 20% or more may mean lower lending fees and interest rates.

Additional Purchase Costs – The purchase price of the home and the mortgage interest of your loan are just the beginning! There will also be lenders’ fees, the home appraisal, the home inspection, fees for all work related to the title, attorney fees, transfer taxes, discount points and other additional fees. FHA loans also incur an additional 1% interest, adding as much as 5% of the purchase price in additional costs.

Mortgage and Home Insurance – There are many hidden fees that are billed along with the mortgage, which may include insurance on the home itself and mortgage insurance, which is often required for those who put less than 20% of the purchase price down. The mortgage insurance rate may be anywhere from .05% to 1.15% of the total amount of the loan.

Property Taxes – Most homeowners have their property taxes billed along with their mortgage payments. The amount of tax depends on the property value, which is not only based on the condition, appeal and amenities of the home; it is also based on the community and municipality it’s located in.

Move-In Costs – Most people focus so much effort on the purchase that it’s easy to overlook the costs of hiring a moving company or renting a truck and buying all the new items such as furniture, carpeting and paint for the new home. Luckily, experienced Chula Vista realtors can help plan for all these little extras.

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Team Ratcliffe - McMillin Realty

I found Matt Gover from an advertisement in a Realty magazine, I called him, he signed me up for e-mail listings of the type of home and location we were looking for within our price range. Due to the crazy lending market, it took us longer to find a home that met our "wish-list". Matt was patient and gave us no pressure for the length of time it took to find a home; he never gave up on us and was calm and mellow throughout the entire process; when we eventually found "the home", he got us in even though the listing was about to expire and there appeared to be no hope because the Sellers had higher than asking price offers, but Matt got us in to see the home and got our offer to the Sellers and our offer ended up being the offer the Sellers accepted. Matt is honest and responsive without that cheesy sales person pressure some realtors convey. He works under Pam and she is a wonderful Christian lady who adds that extra element of warmth that other realtors simply do not have to offer. ---- Deb C, 7/27/2011

As a first time buyer, Joe had the patience and knowledge to help me pick a home right for me. After seeing what I wanted from the listings he sent me, Joe really helped me narrow down what I really want. He worked around my busy schedule. I told him what I was looking for and which neighborhood to look in, and he did the rest. I highly recommend Joe and Team Ratcliffe to all my shipmates, friends, and future residents of San Diego. ----Edward A, 7/20/2010

Miracle workers, that about sums it up. Joe and Pam worked endlessly to sell my home as a short sale in Eastlake. They made the impossible (working with Green Tree) possible. They dedicated countless hours month after month on this sale and kept me in the loop the entire time. I don't think I could emphasis enough the great communication from Joe. He answered his phone every time I called, even at wonky hours and weekends. An amazing team with integrity and the knowledge to sell homes. I would recommend to everyone. ---- Cassandra W, 5/3/2012