What Are The Costs Involved In Buying A Home?
You’re ready to take the plunge! This is a very exciting time, so let me guide you through what the costs may be involved aside from the purchase price of the home. Plan and prepare.
Before closing you will need to cover the initial deposit with offer and assume the cost of a home inspection.
With in 24 hours of acceptance of your offer, you will need to provide the listing brokerage a deposit, usually 5% of the purchase price. This money will be held in a trust account and used towards your down payment on closing.
A home inspection is done during your conditional period and the amount can vary from $300 -$600 depending on the age, location and size of the home. Make sure you hire a qualified home inspector and check references!
Congratulations! It’s Closing Time. Plan and prepare for legal fees, land transfer tax, moving costs and mortgage fees.
Your lawyer will charge for services provided such as title transfer, disbursements, and status cert review if necessary. The costs will range from $1000 - $1500
Land Transfer Tax:
Paid to the government on closing. This fee is typically 1-2% of your purchase price. NOTE: Some areas may have a second tax. Ask your realtor.
May range between $200-$500. You will also need to provide the balance of your deposit. If you are putting less than 20% down, you will be required to pay CHMC an additional fee. Ask your lender to clarify the exact amount.
You will need proof of home insurance on the property and it needs to be effective the day of closing.
This depends on who your friends are and how many times they have already helped you move! Best advice is choose a moving company that comes highly recommended. Ask about policies regarding damage, late fees, and location charges and ask for references.
Find out about any out standing contracts related to the home such as alarm, hot water tank rental, Ask if you will be required to assume these contracts.
Expert Tip: Choose a realtor who is well connected with other industry professionals. They can guide you to the right people, offer suggestions and give you a clear picture of any additional costs you can expect. Plan and prepare.