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If you are planning for a new home loan in 2020, saving up early for your loan expenses can be very useful. You may not be able to anticipate every expense for the new loan, but if you buy or build a house in 2020 you’ll want to prepare for some known mortgage-related expenses.

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FHA Loans for 2020: Mortgage Expenses You Can Plan For

December 8, 2019

FHA Loans for 2020: Mortgage Expenses You Can Plan For
If you are planning for a new home loan in 2020, saving up early for your loan expenses can be very useful. You may not be able to anticipate every expense for the new loan, but if you buy or build a house in 2020 you’ll want to prepare for the following expenses:
 
  • Title Insurance
  • Appraisal Fees
  • Escrow Fees
  • Points or Origination Fees
  • Credit Report Fees
  • Document Preparation Fees
  • Survey Fee
  • Pest or Mold Inspection
  • Property Taxes
  • State Recording Fees

Some costs of doing business when buying a home aren’t directly related to the purchase of the property or its’ construction (where applicable), but they’re expenses you should think about anyway. Those who need to house hunt on a tight budget will be glad they thought of these expenses ahead of time.
 
  • Gas and other transportation costs to look at real estate
  • “Courtesy expenses” such as a gift for your real estate agent for helping you close the deal
  • Moving expenses for after your closing date
  • Replacement appliances, window treatments, other decor or lifestyle needs
  • Security deposits for utility services
  • City or township-specific expenses such as parking permits or “city stickers” where applicable

As you can see, most of the expenses in the second list above are not paid to the lender or seller, but may be required to make your move to the new home complete once you have closed the loan.

Remember that you can also save money by anticipating certain problems--your closing date could be delayed, for example, and while it is tempting for some borrowers to scheduled their moving truck hires for the same day as closing, NOT doing so could save you time and money if there is a change of date to close your mortgage.

You can learn what other expenses might be considered “reasonable and customary” for your housing market by asking an experienced home loan officer, real estate agent, or home inspector.

It’s never too early to start saving and planning to buy or build your new home. You can also contact the FHA directly at their toll-free number (1-800 CALL FHA) to request a referral to a HUD-approved housing counselor near you who can give you additional home loan planning advice.

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