It’s no surprise that purchasing a home is an expensive venture. While owning will often end up costing you less than renting, the laundry list of fees can feel overwhelming at first. As your go-to central Alberta mortgage brokers, we know that knowledge is power. Being prepared for the costs can help you budget for them effectively. Here are some of the most common expenses you may not have considered:
Depending on your lender, you may need to have the home appraised before they accept your mortgage application. This is in order to determine the home’s value in comparison to the asking price.
Inspections aren’t often required, but they can save you a lot of money in the long run. This is to help uncover any potential issues in the home, like problems with the HVAC or electrical systems.
Unless you’ve personally worked in real estate, you will want to consider enlisting a realtor to be on your team. However, you’ll need to budget in their fee.
As long as you are putting less than 20% down on your new home, you are required to pay mortgage insurance. Keep in mind that the more you put down, the less you will need to pay in insurance.
Purchasing a home is a legal transaction. As such, you will need a lawyer for the contractual paperwork. Don’t forget to factor in their fees.
Consider the costs of hiring movers, any renovations that will need to be done, new appliances or tools that you might need right away. For example, if you’re moving from an apartment to a house, you may need a shovel or rake for the yard. The little things will add up.
If you are moving into a condo or townhouse, you may need to pay membership fees on top of your mortgage.
Think you have to pay for a mortgage broker? Think again. This is one important piece that you don’t need to budget for. Lenders are responsible for paying brokers, so you don’t have to worry about cutting into any of your savings accounts. For mortgage brokers that can get you low rates and great conditions, call the experts today!
Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013
Chad and Jenelle Richards
Added January 23rd 2013
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