When taking out a mortgage loan to purchase a home, it is important to know about the additional costs that will be involved in the process. While a luxury home buyer clearly has the funds necessary to cover the costs of purchasing an extravagant upscaled home, understanding the total costs is an essential part of getting all of your finances in order. To that end, here is a look at some of the additional costs you can expect to pay when taking out a mortgage loan.

Third-Party Costs

The process of taking out a loan frequently involves calling upon the services of professionals other than the real estate agent and lender. Appraisers, lawyers and other professionals may also be involved in the process. Therefore, part of your third-party closing costs will include paying these professionals for their services. You may also have professionals who you have personally hired to handle a certain component of the transaction, such as a financial advisor. The cost of hiring this professional may be included in your closing costs.

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The Cost of Add-Ons

Depending on the final agreement and terms that you arrived upon with the lender and the seller, there may be certain add-ons included in your closing costs. For example, if you purchased discount points in order to reduce your interest rate, you will need to pay for those points at the time of your closing. You may also be billed the costs associated with obtaining your credit report and having an appraisal completed on the property. Flood certification and title insurance are other examples of add-ons that may be included in your closing cost.

Of course, some of these costs are negotiable and may be paid by the seller instead. Therefore, knowing about these potential costs before you place an offer is essential because you may want to ask the seller to cover some of these expenses as a part of the final deal. When making your offer on a home, you can save a significant amount of money if you can get the seller to agree to absorb these costs.

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Avoiding Closing Costs

With closing costs repeatedly having increased by as much as 6 percent last year, you may want to consider obtaining a zero-closing cost mortgage. With this option, you do not have to pay any costs at the time of closing. Instead, the lender pays the closing costs and you agree to a higher interest rate. Unfortunately, this generally results in paying more for the home in the long-run. Therefore, it is important to talk to a mortgage specialist in order to determine which option will provide you with the better deal.

Once you have an understanding of your finances and have planned out the costs of a mortgage loan, the fun part begins here! Contact our team of real estate experts to help you find your dream home. They specialize and can take you to luxury homes within the most prestigious communities in the area.

While you are still on the look-out for your next home, browse through our property listing below priced from $7 Million to $10 Million.

  1. 6 beds, 7 baths
    Home size: 8,000 sq ft
    Lot size: 13,939 sqft
  2. 3 beds, 4 baths
    Home size: 3,500 sq ft
    Lot size: 6,534 sqft
  3. 4 beds, 4 baths
    Home size: 4,542 sq ft
    Lot size: 16,988 sqft
  4. 5 beds, 6 baths
    Home size: 5,580 sq ft
    Lot size: 1.14 ac
  5. 3 beds, 4 baths
    Home size: 5,044 sq ft
    Lot size: 5,662 sqft

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(all data current as of 7/24/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.