Potential Extra Charges to Consider When Buying an Indiana Home

If you are buying a home in Indiana for the first time, you are probably full of excitement! There are a lot of things that can be exciting about this time. You get to think about the style home that you want and all the ways that Hidden Feesyou will be able to put your personal touches on it.  However, there are things that can stress people out when they are looking for a new home. One of the main things that stress out a new home owner is the extra costs that they will have to incur on top of their mortgage rate. This article will discuss what some of these fees can be. By knowing what to expect you can feel a little better by being prepared when you purchase your Indiana home.


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Home Inspection

Maybe you’ve already found your dream home.  Don’t be hasty in making an aggressive offer.  There is one step that you will want to complete before you sign the bottom line. Most lenders will highly recommend a home inspection.  Many deals have fallen through due to a failed home inspection.  This can be a huge disappointment in the moment; but, will definitely save much grief down the road.  You can make your offer to purchase contingent on a favorable home inspection.  Be prepared to pay for the inspection as this is an optional step taken by the potential buyer.  A local mortgage professional or local Realtor will be able to refer you to a reputable home inspector.



Another fee you will be responsible for is the appraisal (if required by your lender). Most of the time, the appraisal fees are rolled into your closing costs; which sometimes can be rolled into your mortgage loan. The appraisal is so that your lender can make sure that the home is at least worth what the asking price is for the home. The survey will be so that they boundaries of the property are established.  Click here to read an article called “What Exactly is a Real Estate Appraisal?”



If you put less than20% down on your home at the time of application, then you will also be required to pay PMI.  Private Mortgage Insurance is extra protection on the loan for the investor. In the event you would default or foreclose on your home, the PMI Company would pay the investor a percentage.  PMI doesn’t stay on for the life of the loan. On a conventional loan, you are required to keep PMI for at least two years then once you have at least 20% equity in your property you can request for the PMI to be dropped. For FHA loans, it is at least 5 years.


Title Company

You will have fees through the title company, which is were your closing will most likely take place.  These fees can be broken down for you by your Indiana mortgage lender.


Homeowner’s Association Fees

Some neighborhoods implement HOA fees. Depending on whether you are buying a home, townhome, or condo these fees will vary and are expenses you will want to factor in. Sometimes you will have to pay your yearly rate up front.  You should be informed by your Realtor if there are HOA fees associated with the home when you view it.



Another cost that is often forgotten is all of your home furnishings. This can often be the second largest expense after buying a home. All of the new space will mean that you need new pieces to decorate with. Make sure that you set aside money for this so that you can have fun shopping for all the new furniture and so it won’t stress you out.


 Click here if you have additional mortgage questions.


Now that you know some of the possible fees that can be associated with your new mortgage, you can be prepared for the potential extra expenses.


with contributions from M. Walston

DISCLAIMER: Neither Indiana 203K Mortgages (Indiana203kMortgages.com) nor Luminate Home Loans is affiliated with any government agencies, including the FHA.