You May Be Shocked! Hidden Costs When Buying Your First Home.
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| Hidden Costs! |
Take Time to Educate Yourself
These costs
outlined below aren’t hidden on purpose. You simply may not know about them. As
you enter into perhaps, the single biggest purchase of your life, take time to
educate yourself.
Lender Appraisal and Survey Fee
In order
for the lender (the bank) to assess whether or not you are over-paying for your home they will need an appraisal done. A survey is also
required to verify the property's boundaries and whether or not there have been
any encroachments onto adjacent properties.
Legal Fees and Expenses
A lawyer will make sure your documents are in order, for
example, title search and purchase agreement. They also need confirmation that
insurance has been arranged. Based on the percentage of your down payment, 20
per cent down payment or less, you are required to pay mortgage insurance.
Buying a Home without a Home Inspection.
Never!
Use a
reputable home inspector to check for the condition of
the foundation for signs of moisture seepage, the heating and cooling systems, electrical service, roof, plumbing and structural factors. With an
inspector’s report you should have an outline of repair and/or replacement
costs upfront.
Adjustment Costs and Service Fees
The new
home buyer must reimburse the seller for any pre-paid
costs like property taxes and utility bills. This may amount to several months
of fees. There are typically hook-up
fees when you move in to your new home for utilities, telephone, electricity,
cable, internet and home heating.
Moving Costs
It is
wise to get at least two estimates for the packing and moving of your stuff. One to three months before the
move may be a good time to declutter to keep moving costs low.
Surprise! No Appliances. No Light
Fixtures. No Curtains. No Furniture
Some
first-time home buyers can negotiate with the seller to leave some of these
items behind. Allow for costs for refinishing floors and painting etc…and
things you may need to buy: lawn mower, shovel, rake, garden tools, barbecue,
lawn furniture, hose and ladder, just to name a few.
Any questions? Call Chris for more
information at 403-680-4479
Visit:
www.yourhomeinalberta.com/
