5. Forget To Budget For Closing Costs
Don’t forget to speak with your with your mortgage broker or banker about closing costs. Figure out how you will be able to cover the expenses ahead of time – don’t be caught off guard!
The exact list of closing costs will vary from contract to contract, but they generally include:
- Property transfer fees
- Appraisal fees
- Site survey or title insurance
- Home inspection fees
- Legal fees
- Homeowners’ insurance
- Mortgage insurance
- Property taxes
- Mortgage lender/broker fees
- Additional costs (GST)
Closing costs add up to as much as three per cent of the cost of a new home, which equals $12,000 for a $400,000 home. They are not consistent across the board, as well, and can vary greatly between contracts. If you are unable to cover these costs when needed, be careful — you could lose your dream home.
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