Working out your home-buying budget before you begin shopping for your new home is essential. After all, nobody wants to waste time touring homes for sale in Las Vegas only to discover they cannot afford to buy their dream home. So what goes into working out an accurate home-buying budget? Budgeting for the down payment is the big-ticket expense home buyers tend to think of first, but there are other out-of-pocket expenses you're likely to face during the home-buying process. Our REALTORS® have created this list of some of the additional fees you should include in your home-buying budget:

1. Inspection Fees
   When you find the house that you want to be your new home, you will need to schedule at least one professional inspection to ensure that you have a reliable assessment of its condition. This is done after you have made an offer on a home and that offer has been accepted by the seller and is an essential step in protecting your interests. It is also often required by lenders to protect their interests. A general inspection of the home is the first step. If potential problems are found, other inspections may be necessary, such as a once-over from a termite specialist, for instance, or a perhaps sewer inspection. Depending upon your particular circumstances, you may spend anywhere from a few hundred to a thousand dollars or more on inspections.
   
   
2. Appraisal Fees
   Lenders require that homes are appraised before mortgage loan agreements can be finalized. The purpose of these appraisals is to ensure that the home is worth the amount you intend to borrow for its purchase. Your lender will hire an independent, certified appraiser for the job, and you will be responsible for the costs of the appraisal, which may run anywhere from $200 to $600 or more.
   
   
3. Closing Costs
   These costs average between 2 to 5% of a home's purchase price and will need to be paid when you officially seal the deal on your new home. A variety of fees and costs are rolled into closing costs, which can include loan origination and underwriting fees, attorney fees, prepaid property taxes or homeowners association fees, wire transfer fees, document preparation fees, and recording fees, among many other possible charges.
   
   
4. Escrow Accounts
   You will also need to budget for any required deposits to escrow accounts at closing. Just how much money you will need to set aside for this step depends on your circumstances and the requirements of your lender. The money that is deposited into this account will be used by your mortgage lender to pay certain expenses related to your home, such as property taxes, homeowners insurance premiums and private mortgage insurance (PMI) premiums. These accounts work to ensure that these expenses are kept current, protecting your lender's financial interest in your home as you work to repay your purchase loan.

For more information on what to expect as you prepare yourself financially for a home purchase, contact us at Wardley Real Estate. Our real estate agents are happy to put their experience and expertise to work to help guide potential new homeowners through the complex and often confusing home-buying process.