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Whether you’re buying your dream piece of Palm Desert real estate or investing in a vacation home, there are many costs that you may not be aware of or forget about in the excitement of purchasing a new property. Here are a few things to remember so that the expenses of buying a home don’t shock you when they start adding up.

There are more costs associated with buying a home than your down payment, mortgage rates and tax payments. Once your loan is approved, there are other costs you will need to cover before you get the keys to your new abode. You’ll need to pay your agent or realtor fees and most likely want to hire an attorney to review and approve all the paperwork associated with the transaction. If your dream piece of Palm Desert real estate is a condominium or gated community, you’ll want to find out how much the Homeowners Association (HOA) fees will be so you can factor that into the equation.

Another important item to remember is Homeowner’s Insurance, which is necessary to obtain a mortgage. This type of insurance will cover your property and contents, though a standard policy won’t typically cover natural disasters such as earthquakes, floods,tornadoes and hurricanes. If you live in an area that is at risk for any of these type of disasters, you may want to take out an additional policy.

Depending on the size of the down payment you made on the property, you may have to obtain Private Mortgage Insurance (PMI) and Title Insurance. PMI is required when your down payment is less than 20 percent of the purchase price and is designed to protect your lender in case you default on your loan. Title Insurance protects you and the lender in the case of an unusual circumstance where another party tries to lay claim to the title and your property.

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