When you’re buying a loft or condo for sale in DTLA, you know there are a handful of hidden costs – but what are they?
Here’s what you need to know.
Hidden Costs of Buying a Home
- Earnest money
- Closing costs
- Property taxes
- Homeowner’s insurance
Earnest money is an important part of buying a loft or condo. You’ll have to come up with what’s called an earnest money deposit, which is cash that shows the seller you’re serious about buying. That money lets the seller feel confident that you’ll buy so he or she can take the home off the market.
Closing costs is a general term that covers all the fees you’ll pay when you sign the dotted line that makes a condo or loft yours. It can include things like recording fees, inspection fees and attorney’s fees. You’ll pay them at closing.
Property taxes usually get lumped into your monthly mortgage payments. Your lender will take the money and put it in an escrow account. When the taxes are due, your lender will pay them for you. It doesn’t always work that way, but for the most part, it does. Talk to your agent and your lender about your property taxes if you’re concerned.
Everyone who has a mortgage has to buy homeowner’s insurance. It doesn’t necessarily protect you as much as it protects the lender, though – if something happens to the home, the lender doesn’t want to be left with the bill. Like property taxes, homeowner’s insurance is usually rolled into your mortgage payments so you don’t have to worry about it each month.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our: