Purchasing
a home is a euphoric event. Once escrow begins, the euphoria can change to
frustration, particularly if you are not ready for the closing costs that
quickly accumulate particularly as real estate investment in Kenya is
concerned.
Budget for Closing Costs – Home Inspection and Title Fees
Closing
costs simply refer to the fees associated with various things associated with
the escrow process in a real estate transaction. In the excitement of having an
offer accepted for your dream home, you can easily lose track of the fact you
are going to need to have some serious cash on hand to pay them. Many people
make the mistake of only assuming they need the down payment money, and have to
rush around town trying to come up with money for the closing fees.
If
you are buying a home, you need to get a professional home inspection. Doing so
can reveal potential problems with the home that you wouldn’t otherwise notice.
Problems can include things such as rot, termites, water leaks and a bevy of
other issues. The time to do this is during escrow. Of course, that means you
are also going to have to pay for the inspection. Depending on the size of the
property, home inspections can run a few thousand shillings up to a few
thousand. Make sure you have money set aside for the fees.
Title
insurance is something you absolutely must purchase when you buy any real
property, a home, building, land or whatever. Title insurance protects both you
and your lender. Title insurance is just what it sounds like. A title company
will research the title of the home and essentially guarantee that the title is
good. This means the seller actually owns the title and has the right to sell
it to you. The title company will also make sure there aren’t any liens on the
homes or other things that will cause you problems. Depending on the price of
the home, title insurance can run you a couple of thousand shillings or up into
the millions. Again, it is important to find out the cost and budget for it.
Title
insurance and a home inspection are two things you should absolutely have when
purchasing a home.
Just make sure you budget for them. www.kenyan-real-estate.com