What would you say are the hidden costs?
Answers:
gas, electric, water, sewage, council tax, life assurance, building insurance, contents insurance, phone bill,
good luck
Hey Oliver,
There is only one true way to decipher whose offering you a good deal and who's trying to proverbially "run you up the flag pole". It is called an APR, or annual percentage rate. It takes into effect the "cost of your credit as a yearly rate". So, in a nutshell,
let's say you are shopping loan programs/rates/costs, etc, between two lenders. The first one offers you a rate of 6.5%, with an APR of 6.916%. The second offers you 6.5%, which is the same rate as the first, however, their APR is 7.412%. The second offer has additional costs than what the first company offered you. The APR is found on the Federal "Truth-In-Lending" statement. This is the only way to know if there are hidden costs.
You should always ask for a "Good Faith Estimate" as well, which breaks down the costs being charged line for line. Be careful though, since this is truly an estimate, it's easy to get "baited and switched". If you would like to discuss this further, or would like me to look at the offers that are being presented to you, please let me know, I would be happy too. You can reach me either here or at my work email, which is jeichbrecht@mbsmtg.com. I am an Executive Mortgage Banker, and am willing to work options up for you as well. Thanks Oliver.
If you find yourself an honest loan officer, there shouldnt be any hidden costs. You will have to pay for an appraisal, credit report, underwriting fees, processing fees, title fees, endorsements, wire fees, document preperation fees, it should come to no more than about 3% of the total price of the home, or loan.
For start with:
1. servery fee,
2. stamp duty (1% of the purchasing fee under120k, 3% for under 250k, and 4% for anything above.)
3. Legal fee, (although some bank might pay for that)
4. mortgage fix fee,
5. insurance (to protect the bank! I know, it sucks..)
6. moving fee, any maybe re-decorating fee..
7. and if you are buying a flat, management fee yearly and grant rent fee. (I was very stocked for start with!)
Then, once you lived in, all the cost of running a house/flat will kick in, so, utility bills.
Then, as yo have said, the council tax will starts!
By the end, when you want to sell the house, you will have to pay your bank the final fee to get out of the mortage! and off couse, you will have to pay estate agency fee to sell your house and pay the govement for any capital gain!
Good Luck!
p.s although it is a long list, but, you will get by.
Stamp duty, Solicitors cost, moving cost, Property and content insurance, Gas, electricity, water rates, telephone, TV licence, car insurance, road tax and grocery bill.
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