By Kathy Henne

Contributing columnist

Have you ever read one of those travel agency ads that offer seven days/six nights in Paradise for a package price of $399? You may have also noticed the fine print in the ad: Airport transfers, taxes, tips, and departure tax not included. Although the basic cost of the trip is $399, there are other charges that must also be paid.

Buying a home also includes many out-of-pocket expenses beyond the agreed purchase price. While the down payment may be the largest expense attached to a home purchase, ask your lender to provide an itemized list of other fees and expenses required to consummate the transaction, so that you don’t experience any surprises.

Depending on the mortgage plan chosen, other charges may include: 1) loan origination fees, 2) advance deposits for taxes and insurance, 3) mortgage insurance fees, 4) recording fees, 5) fees for credit reports and appraisals, 6) discount points. Some fees are figured as a percentage of the purchase price or loan amount, while others are a flat amount.

The title company will calculate the exact amount needed to complete the transaction, but buyers should expect to receive an estimate of these costs for planning purposes from their lender. Armed in advance with the necessary figures, buyers can plan their purchase with confidence.

Contact the Kathy Henne Team RE/MAX by calling 937-778-3961.