As your local Kamloops mortgage broker, I wanted to discuss the importance of being fully prepared for buying a home and what that will look like. According to The Complete Guide for First-Time Home Buyers, many new home buyers learned the most significant lesson: They should have been more thorough when budgeting and accounting for all home ownership costs. Many first-time buyers will have to borrow money when buying a home. There are also fees involved in the purchase process. These costs can be significant—so they are important to consider. For every known expenditure, there are often hidden or unexpected fees.
Closing Costs
Generally, you need to set aside 2 to 4 percent of your home’s selling price in total closing costs, which can include:
- Appraisal fee
- Home inspection
- Tax: depending on where you are, it’s called Land Transfer Tax, Land or Deed Registration Fee, Tariff or Property Purchase Tax. This tax can take buyers by surprise because the amount can be substantial. Ask your mortgage broker to estimate what this can add to your situation.
- Legal fees
- Title insurance
- Utility hook ups
- Reimbursement of bills pre-paid by the previous owner, for instance, property tax or utility bills
- Interest adjustment
- Moving costs
- Furniture/appliances
Maintenance
When setting your budget, you also need to consider the ongoing costs that will become a part of your monthly homeownership expenses, which include:
- Home Insurance
- Property taxes
- Utilities – gas/hydro/water
- Cable/Internet
- Ongoing maintenance
Let’s talk in the early stages of your home-buying journey. I’ll ensure you know all the costs and ongoing expenses of a new home and get you on the right foot.
