You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your REALTOR® and/or Lawyer conducting the closing will tell you the required amount for:
- Down payment on the purchase price
- Appraisal (some banks will include this if you deal with them)
- Credit report (should be included from your lender)
- Private mortgage insurance premium – depending on the amount of your down payment
- Homeowner’s insurance
- Property tax even if being paid as part of the mortgage, you may have to reimburse the seller for a portion they have already paid – determined on your date of closing. Lenders keep funds for taxes accounts as they are paid with the mortgage, then pay taxes for you.
- Title registration costs are included in your lawyers conveyance fees
- Legal fees
- Survey Certificate if the seller does not have one to pass on
- Title Insurance is an alternative to a Survey Certificate
- Proration's for your share of costs, such as property taxes
- Property Transfer Tax (as a first time buyer you may be exempt – confirm if you qualify
- Utility Deposits (if you are new to the Utility company your deposit may be substantially more than just a transfer fee)
- Home inspection - cost varies depending on size and age of home
I haven’t gone into the detail of all of these items – Your REALTOR® or Lawyer will confirm these costs and determine if you qualify for exemptions or discounts. It’s important you have a discussion on all these items so you are properly prepared.
Reviewing home maintenance expectations is also a great conversation to have. Never having owned a home before you may not be expecting the ongoing costs for changing your filters, lights, yard maintenance, or garbage removal. If you are purchasing a new home – you might need to buy window covers, yard maintenance equipment like hoses, lawn mower, rakes. Small appliances are not usually included in your purchase – you might need a microwave, coffee pot, fire extinguisher, garage door remote.
Not to overwhelm – just wanting you to put complete thought into your process so you can enjoy the end result and not be caught short of funds or have unrealistic expectations.
At the end of it all – nothing gives you a greater sense of community, accomplishment and pride then settling into you first home.