When property buyers purchase a new home in Illinois, they will not only be expected to cover the sale price of the home, but a variety of other property expenses. Those interested in buying real estate should familiarize themselves with these costs before making a final purchase to ensure that they are fully prepared for the cost of owning a home.

HOA expenses

When property buyers purchase a new home in a planned development, gated community or even in a standard subdivision, they may be required to pay monthly fees to their community homeowner’s association. These fees are designed to pay for upkeep on common areas, such as the subdivision’s park or landscaping, and often range from $200 to $400 a month. Generally, the more upscale the community and the more amenities it has, the more these fees will be. Those purchasing real estate should find out if the home they want to buy is in an area that requires these fees and how much they are before finalizing their purchase.

Other hidden costs

In addition to HOA expenses, there are many other different types of costs future homeowners should be aware of before purchasing a home. These include the following:

  • Home inspection costs—Before completing the home buying process, the mortgage provider often requires buyers to have a home inspection done to evaluate the home’s structure and interior and exterior components.
  • Survey costs—In addition to a home inspection, lenders often want to have a professional survey of the property done to establish the exact boundaries of the land.
  • Taxes—Most property buyers are aware that they will need to pay taxes on the home they buy. However, what many don’t realize is that these often need to be prepaid at closing.

Depending on the purchasing situation, buyers may also be required to pay a variety of other miscellaneous fees. For example, during the lending process, the mortgage provider often requires the buyer to pay a loan origination fee. On a mortgage loan of $97,000 with an interest rate of 3.5 percent, this fee could be at least $975. Others fees may include government recording charges, an appraisal fee, a credit report fee and a tax service fee.

All of these expenses should be added onto the total purchasing price of a home and can often significantly elevate what buyers are expected to pay on the property. Those buying real estate may benefit from speaking with an attorney who can provide more information about which types of fees they will be held responsible for when they purchase a new home.