Purchasing your own home is such an incredibly liberating experience that it can be easy to forget all of the underlying costs not included in your mortgage contract. Don’t be caught unawares by hidden costs. Here are some expenses you’ll want to consider in your home buying budget.
While not mandatory, home inspections can save you a lot of time, money, and energy in the long run. The inspection will determine if everything in the home is in working order. If repairs are too much for your budget you can walk away. This isn’t exactly a closing cost, but it is still worth considering.
In some cases, homeowners will benefit greatly from investing in title insurance. This is an insurance policy that protects the homeowner against challenges to the ownership of the home or from problems related to the title to your home.
Property insurance differs from title insurance in that it protects you in case of fire and other disasters. It is also a cost required by lenders. The exact coverage must be at least your home’s replacement value.
As your home buying journey comes to a close, you will be responsible for all fees and disbursements required by your lawyer or notary. Legal costs can vary greatly, so ensure that your lawyer’s rates are built right into your budget as soon as possible.
The government of Alberta charges a land transfer tax when you buy a property. For the most part, this amount is based on the home’s purchase price. Some cities even charge their own municipal land transfer tax on top of that. First time homebuyers are sometimes eligible for rebates in this area, but it is still important to do your research in the area you are purchasing.
On top of these costs, there are also moving costs and potential renovations. No matter how you hack it, purchasing a home is expensive. However, having a little bit of knowledge and some expert guidance can ensure you are prepared for almost anything! If you are purchasing in Red Deer or surrounding area, we may be able to help. Call us today at 403-341-7800.
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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