Imagine you just purchased your dream farm. It is everything you have ever dreamed of; rolling acres, multiple horse stalls, a cute farmhouse, and the ideal location. Yet, before you celebrate your new purchase, there are additional costs that must be covered before you close. These are the following costs that you should prepare for:

A Dream farm needs to be inspected Before Purchased

A dream farm needs to be inspected before purchased


  1. Home Inspection Costs

Home inspections are very important because they disclose any major repairs or problematic areas of the home. Inspectors will search for any foundation issues, heating/cooling system issues, leaks, mold, etc. After the inspector processes the condition of the property, they will supply a report detailing the issues and severities of the problem. The average inspection costs between $300-$500. When purchasing horse farm you want to extend the inspection to the barn and arena which adds to it, depending how big and fancy the barn is.

  1. Title Fees

Title fees cover many different costs. Title fees cover the public record search required to make sure the title is clear. It also covers the notary fees for the individuals that watch you sign the paperwork required to purchase the property. Any government filling fees will also be included. Title fees typically range between $150-$400.

  1. Appraisal Fees

Before paying for a property, your lender will need an appraisal report to verify that your property is worth what you are paying. Lenders are more concerned about the appraisal value during poor economic times. The average appraisal costs between $300-$600. Make sure you lender has an appraiser available who knows about equestrian properties.

  1. Application Fees

The lenders charge an application fee for processing your credit report and any fees from running the report. Based on the results of the credit report, the lender will decide whether to issue you a loan and at what interest rate. Application fees can be between $75-$300.

  1. Lender’s Origination Fees

The lender will also charge you a fee for creating the mortgage loan. To make a mortgage, the lender must charge you for processing the loan, underwriting the loan, and funding the loan. This fee is based on a percentage of the loan, typically ranging between 0.5%-1.5%.

  1. Private Mortgage Insurance

Not every homebuyer needs private mortgage insurance. PMI is only required if you put down less than 20% down on your home. The insurance protects the lender from losing money in case you are unable to pay your mortgage and must foreclose. PMI is also based on a percentage of the loan, typically averaging between 0.3%-1.5% of the loan amount.

By Anna Hellman

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