As we purchase a new home there are many things in our mind. We think of getting a mortgage then we go around with our real estate sales representatives to view homes that we like, we negotiate then we close. At this point our minds are rushing to the preparations of our dates of possession. We think of how we will move our things from the old home to the new, we think of the expenses of such a move, but oftentimes we miss the very fundamental expense that we need to consider. These are the closing costs and funds have to be allotted to ensure the smooth transition to the new home. They are as follows and there are 10 of them.
- The land transfer tax.
- The appraisal fee.
- The Legal Fees.
- The home inspection fee.
- Home and Fire Insurance
- Cost of newly constructed homes. ie. upgrades not included in the price, paving and landscaping.
- Prepaid Costs ie, the utilities, Hydro, Gas, Water, these have to be adjusted and are reimbursed at closing.
- Tax on Mortgage Insurance
- Title Insurance and
- Moving in Costs.
Not all of these cost may apply especially if you are purchasing a resale property. Nevertheless it is good business sense to keep these in mind so that there will be money reserved for all these expenses.
Thanks to the source of this report: Mark Mighton of Home Free Mortgages.