When you purchase a home, there are various fees in addition to your mortgage that you’re responsible for. An unexpected bill's the last thing you want when you go to pick up your keys. Closing costs will vary depending on individual circumstances but here’s a brief summary:
Title Insurance - Assures title to the property. Costs usually range from $200 to $400.
Legal Fees - Vary depending on the complexity of your situation but could cost up to $1,000.
Mortgage Insurance & Appraisal - Prepare yourself by speaking with your lender so you’re aware of all the upfront costs associated with your mortgage.
Taxes/Fees - Depending on your situation, there could be various transfer fees and taxes to pay that could range from hundreds to thousands of dollars.There are also some expenses that you'll want to keep in mind after you receive your keys (often referred to as post closing costs) which could include:
Moving Costs - Factor in the costs of a moving and/or packing company. If you decide to move yourself, don’t forget the cost of the rental truck.
Connection Fees - You may have to pay for hook ups at your new place which could include electricity, gas, cable TV, telephone, Internet, etc.
Renovations and Repairs - It’s a good idea to set some money aside for potential repairs that may arise. Home ownership is all about expecting the unexpected!
Miscellaneous - Costs could include such things as having the locks changed, decorating, window coverings, appliances, etc.
This summary is by no means all inclusive as closing costs vary from situation to situation but they usually represent somewhere between 2 - 4% of the purchase price.
It's best to discuss your circumstances with your Realtor for a more accurate estimate. Buying a home can be an emotional roller coaster but you'll enjoy a smoother, less stressful ride if you're aware of what lies ahead.
If you are looking for someone to help walk you through the process and take care of your real estate needs, please call me at 905-619-9500 or visit http://www.michellemakos.com/ today.
P.S. - Rates are going up so lock in your rate today..... it will save you $$$$ in the long run.
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