Buying a place you can call a home can be considered a big accomplishment. While choosing the right house for you is an exciting process, it can also have high costs attached.
The listed price of the property is not the only cost you should factor into consideration when buying a home. While top real estate agents can guide you throughout the entire home buying process, you should also do your research to ensure that you know what type of closing costs are required when you purchase your new home.
- Deposit
An upfront deposit is usually required depending on the price of your property and the market conditions. This serves as a security measure to make sure you don’t lose the house to another buyer and assures the seller that you’re serious about the purchase.
- Down Payment
Down payment is the portion of the purchase price of the home that you pay upfront upon acquiring the property. Usually, the minimum down payment depends on the purchase price of the home. Talk to your lender about requirements and understand what they cover on your new home purchase.
- Land Transfer Tax
Buying a home requires you to pay a land transfer tax upon closing. This tax is based on the value of the property and the remaining amount on any mortgage or debt. The cost will vary depending on your municipality, the size of the land, and other factors.
- Appraisal Fee
An appraisal fee covers the amount of having a professional appraiser estimate the market value of your home. The fee can change depending on the appraiser and your location.
- Home Inspection
A home inspection is recommended when buying a home to help you avoid potential pitfalls. Its cost will depend on the size, age, and condition of your home.
- Property Insurance
It’s important to secure your hard-earned investment with property insurance. To protect your house against potential loss or damage, make sure to find insurance policies and plans and obtain the coverage that’s right for your needs.
- Mortgage Insurance
To increase your chances of qualifying for a loan, mortgage insurance lowers the lender’s risk of providing you a loan and protects them in case you fall behind on your payments. This is required if your home down payment is less than 20 percent of the purchase price.
- Lawyer Fees
You may not be familiar with the process, fees, and laws involved when buying a home, especially if it’s your first time purchasing a property. By hiring a reliable real estate lawyer, you can be guided throughout the entire process and reduce the risk of getting scammed.
The cost will depend on your lawyer, and the fees must be paid upon closing. You can ask top real estate agents for recommendations for a trustworthy real estate lawyer.
- Title Insurance
When purchasing a house, acquire title insurance as it protects you from losses related to the title or ownership of the property. For a one-time fee, title insurance provides you with clear ownership of your home.
- Property taxes
Property tax is paid on property owned by an individual or an entity, and it is billed annually.
When you’re planning to buy a new home, seek assistance from top real estate agents for the computation of your property tax for previous years. This will help you plan and prepare for this ongoing expense.
- Maintenance and Energy Expenses
Maintenance fees and energy costs are most likely your largest ongoing homeowner expense. These include expenses for running your household continuously, such as lawn care or yard maintenance, bathroom repair, and more.
- Moving Expenses
Moving to a new property requires a lot of work. Sometimes, this can even be an emotional time for you as you leave a place you once considered your home. To help you pack your belongings and prepare for your move, it’s best to get help from a moving company. Potential costs include the payment for electricity, phone, and other utility installations, as well as movers and a moving truck.
Buying a new home involves a big amount of money, which is why this should take a lot of careful planning and thorough consideration. We understand that going through this process can be overwhelming, so it’s best to ask for help from top real estate agents like us – know when to get your agent involved.
If you’re looking for top-rated real estate agents in White Rock or the Lower Mainland to help you buy a home, get in touch with us to see how we can help. We look forward to serving you!