Tax help > 13 Extra Costs to be Aware of Before Buying a Home

13 Extra Costs to be Aware of Before Buying a Home

by: Mark Eibner

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 bud-get properly.

Remember, buying a home is a major milestone. Whether it's your first, second or tenth 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.

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 $175 -$ 300.

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.

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 $190 - $1,000.

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. Beware!
Some homes may not be insurable. Make sure you have an insurability clause in your purchase contract.

5. Service Charges

Any new utility that services your hook up, such as telephone or cable, may require an installation fee.

6. Escrow and Document Preparation Fees

Escrow fees are split between the buyer and the seller in Colorado. However, additional fees will be charged for the buyer's mortgage closing. This can include first and second mortgages. In addition to the "Doc Prep" fees charged by the lender, some lenders will e mail the loan documents and therefore the escrow or title company may charge a electric to paper fee.

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% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.

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.

9. Moving Costs

The cost for a professional mover can cost you in the range of:

? $50-$100/hour for a van and 3 movers, and

? 10-20% higher during peak demand seasons.

10. Maintenance or HOA Fees

Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.

11. Water Quality and Quality Certification

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

12. Local Improvements

If the town, city or county you live in has made local improvements (such as the addition of sewers or sidewalks), this could impact a property?s taxes by hundreds of dollars.

13. Metropolitan or Special Tax Districts

This is a unique tax district set up by the developer to finance all aspects of the physical infrastructure such as streets, sewer and even recreation centers or golf courses. The developer only has to put up a small percentage of monies for these costs and the rest are floated with bonds and added to the homeowners tax bills until paid off. The arrangement can work nicely when there are plenty of homebuyers to pick up the tax bill. But, in a down market, watch out...you could end up holding the bag when there is not enough buyers to fund the bonds.

Are you looking for Real Estate in Denver Colorado?
Visit http://www.realtyoasis.com to find current information and resources about home sales in Colorado.
Realty Oasis Metro Brokers offers the top realty expertise and resources to help you find your dream home.
Also check out our current home listings in Colorado at http://www.realtyoasis.com/listings/residential.aspx. We have extensive home listings in Parker, Highlands Ranch, Aurora, Centennial and all cities in Colorado?s Front Range.

About The Author

Mark Eibner is the cofounder and Broker owner of Realty Oasis. When you hire Mark you also hire an entire team of professionals. Each staff member performs a specialized part of the buying and selling process. This support team helped place Mark among Denver's Top 5 Realtors from 1997 through 1999, and in the #1 position in 2000.

3 Easy Steps To Donate a Car and Get a Deduction

3 Easy Steps To Donate a Car and Get a Deduction

by: Brandon Hopkins

At one time or another it will happen to just about everyone.
You will get your W-2's from your employer, and sure enough you made some money!

That is a good thing right?
Yes and no.
It is a good thing as long as you had the adequate amount of taxes deducted during the year, but what if you didn't?
What if you owe the government money on April 15th?

This can be a scary situation for most people, and can end up costing you dearly.
What do you do if you owe the government more money than you have?

Find a deduction!
If you have an old car sitting around or one that isn't running, they will work perfectly.
Maybe you even have a car you've thought about trading in, that will work as well.

Here are 3 easy steps to an income tax deduction by donating a car (or other vehicle).

1. Do your homework.

There...

3 Easy Steps To Donate a Car and Get a Deduction

Tax help > 3 Easy Steps To Donate a Car and Get a Deduction

Tips and Simple Guidelines On How To Calculate Payroll Taxes

Tips and Simple Guidelines On How To Calculate Payroll Taxes

by: Sara Jenkins

Managing a business small, medium or big requires you to pay your taxes, as well as your employees taxes. Managing a payroll can be an arduous and taxing job, no pun intended. There are laws that require us to pay taxes and everyone have to comply with that. But keeping up with the payroll can give many people sleepless nights. There are so many deductions needed to be done and they have to be exact to avoid confusion and complications later on. State and federal taxes are very strict and you don?t want the IRS pounding on your door because of some mistakes. Make sure that you do your calculations correctly to avoid a mess later on. Keep your payroll records and tax payments as your reference so you have proof of the deductions and payments you have done. Different states have different laws about records; check it out with your lawyer or accountant to make sure.

So...

Tips and Simple Guidelines On How To Calculate Payroll Taxes

Tax help > Tips and Simple Guidelines On How To Calculate Payroll Taxes

Changing Jobs? Don?t let your 401(k) slip away.

Changing Jobs?
Don?t let your 401(k) slip away.

by: Ken Morris

Changing Jobs?
Don?t let your 401(k) slip away.

Today?s job market is more transitory than ever. And, as more and more individuals switch jobs, they begin to wonder what they should do with the money they have accumulated in their employer-sponsored retirement plans such as their 401(k) plans. The good news for 401(k) plan participants is that your retirement plan assets are very portable so you may be able to keep your existing 401(k) plan assets in a tax-deferred environment.

The trick is to resist the urge to use the monies. After tucking money away in your 401(k) for quite some time, you may be tempted to use it to treat yourself to a new car or some other indulgence. Because it could literally take years to replace your existing 401(k) funds, you should think carefully before prematurely taking money from your retirement savings.

A hasty withdrawal...

Changing Jobs? Don?t let your 401(k) slip away.

Tax help > Changing Jobs? Don?t let your 401(k) slip away.

What Does Extending Your Taxes Mean to You?

by: Tiffany J. Morisue

Introduction

As the tax filing deadline is quickly approaching, many procrastinators and those who legitimately are just not ready to file their returns become stressed out and frantic, trying to meet what may virtually be an impossible deadline.
Many would rather rush to get their returns prepared than file an extension.
Common concerns include, but are not limited to, being flagged as a late filer, being assessed penalties, or being more likely to be audited.
If you are one of these individuals, I hope that I can put your mind at ease and inform you of what it really means to extend your tax return and the benefits of doing so.

A few notes before getting started:

This article is written assuming a tax year that is the same as the calendar year, which is the case for most individual taxpayers.
If a tax deadline...

What Does Extending Your Taxes Mean to You?

Tax help > What Does Extending Your Taxes Mean to You?

Do You Need Life Insurance

Do You Need Life Insurance

by: Joseph Kenny

It can be very difficult to decide if you need life insurance. Life insurance can be an extremely onerous financial commitment and investment, and it will also last for a considerable period of time, so you should take careful consideration in deciding if it is the best way of achieving the financial and other goals you and your loved ones may have.

Life Insurance Policy

Basically, a life insurance policy will cause a sum to be paid to the named beneficiary upon the death of the insured. This sum will generally be paid to the beneficiary, free of income tax. So in which instances is life insurance generally used above its alternatives? Well its primary function is to provide death benefit protection in a tax efficient way. For example, if you would like to transfer wealth from your estate to your beneficiaries you can do it through life insurance.

You should now that it may still be liable...