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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

Joe Gover is the epitome of professional. He was always available. He kept us updated every step of the way, and when we ran into some problems with the listing agent, his mild-mannered personality took on the necessary edge to get our needs met. No question, we'll use Joe again, and we'll recommend him to anyone who asks. ---- Elizabeth S, 12/8/2011

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

My husband and I are both first time home buyers and we went through 2 other realtors before we found team ratcliffe. We worked with Joe primarily and with Pam during the escrow process. They are extremely professional and friendly, they are easy to get ahold of and willing to answer any questions you have. They also have a reference to just about anything and everything you could need a reference for. We hit about a million bumps in the road, and ones that our past realtors couldn't get us over, and we still made it out on top. They are very willing to fight for you when they need to and they make you feel like you matter as a person and not just as a paycheck. I would recommend team ratcliffe to everyone and I plan to go back to them when we sell our house! ----Krisitin S, 7/5/2010