Costs With Buying a Home

By: Paige Martin

Everyone knows that buying a home is a major purchase. It's such a major purchase in fact, that it's probably the largest purchase a homeowner will make in their lifetime.

However, there are many costs aside from the purchase price that need to be considered so that homebuyers, especially first-time homebuyers, aren't surprised to learn that their home is costing them more than they had originally thought.

Closing costs are generally the first of the expenses that will come up, after the sale of the home has been completed. These include legal costs, property and land transfer taxes, and utility adjustment costs. Legal costs will need to be paid to the lawyer that looked over the final sale contract and any legal help that was provided when deciding on the terms of the contract. Lawyers also help with the mortgage, title searches, getting a new title registered, and collecting the necessary documents when one is purchasing a new home.

Land transfer taxes may also be required upon closing. These taxes are applied when property changes from one owner to another. While they are not applicable in every area, it's important to know if you will be responsible for them.

A property survey may need to be done to determine the property' boundaries, any encroachments or right of ways. This will give the homeowner a better idea of what their property specifically includes and will be very helpful in the future. Title insurance can be purchased in place of a property survey but it will be a necessary expense either way.

Interest adjustments will play a part of the mortgage. These adjustments make up for the amount of time between when the property was purchased and when the first mortgage payment was made.

A home inspection should be done to ensure that there are no major concerns with the property such as mould or faulty plumbing and electrical services. These inspections are usually done before the final purchase and a licensed contractor will come in to complete the inspection.

Many homebuyers want to make sure that they are paying fair market value for a home and for this reason, they may want to call in an appraiser who will give them a good idea of the home's worth. This is another expense that often happens before the final purchase.

These are just a few of the associated costs with buying a home. It's important that homebuyers familiarize themselves with exactly what buying a home will cost them so they can properly prepare their budget before they make that large purchase.

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