How Much Should I Expect to Pay on Closing Costs?

How Much Should I Expect to Pay on Closing Costs?

Whether you’re looking to buy your first home, or trading up to a larger one, there are many costs – on top of the purchase price – that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared. Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it’s better to know about them ahead of time so you can budget properly. Remember that buying a home is a major milestone. Whether it’s your first, second or tenth home, there are many important details to address during the process. The last thing you need are non-budgeted financial obligations cropping up hours before you take possession of your new home.

Read through the following checklist to make sure you’re budgeting properly for your next move.

 

Appraisal Fee

Your lending institution may request an appraisal of the property, which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 -$300.

 

Property Taxes

Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.

 

Survey Fee

When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $700- $1,000.

 

Property Insurance

Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan.

 

 

Service Charges

Any new utility that services your hook up, such as telephone or cable, may require an installation fee.

 

Legal Fees

Even the simplest of home purchases should have a lawyer involved to review all paperwork. Shop around, as rates vary greatly depending on the complexity of the issues and the experience of the lawyer.

 

Mortgage Loan Insurance Fee

Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5 percentage -3.5 percentage of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.

 

Mortgage Brokers Fee

A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.

 

 

Moving Costs

The cost for a professional mover can cost you in the range of:
$50-$100/hour for a van and 3 movers, and
10-20 percentage higher during peak demand seasons.

 

 

Maintenance Fees

Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.

 

 

Water Quality and Quality Certification

If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Depending upon where you live, determines whether or not a fee is charged, to certify the quantity and quality of the water.

 

 

Local Improvements

If the town you live in has made local improvements (such as the addition of sewers or sidewalks), this could impact a property’s taxes by thousands of dollars.

 

Land Transfer Tax

This tax is applied whenever property changes hands and the amount that is applied can vary.

Hut Realty

Testimonials

LAURA CHARETTE


This letter is sent to you in appreciation for the successful buying of our home. Dale Mundi presented himself in a professional calm manner, most knowledgeable and considerate of our needs. Thank you for your hard work, dedication and guidance through the whole process. Sincerely we wish you all the success in the future. We are pleased to recommend Dale Mundi without hesitation.




 

LAURA CHARETTE

2014-12-18T15:30:43+00:00

LAURA CHARETTE

This letter is sent to you in appreciation for the successful buying of our home. Dale Mundi presented himself in a professional calm manner, most knowledgeable and considerate of our needs. Thank you for your hard work, dedication and guidance through the whole process. Sincerely we wish you all the success in the future. We are pleased to recommend Dale Mundi without hesitation.  

DAVID J. GROVES


Real Estate Hut Realty Inc. has been a great help especially when we were not sure what is best for us to buy. Mr Mundi helped us find our dream apartment. Mr. Mundi was always available for any questions or concerns. Mr. Mundi is really knowledgeable in the real estate business and a great professional.




 

DAVID J. GROVES

2014-12-18T15:31:44+00:00

DAVID J. GROVES

Real Estate Hut Realty Inc. has been a great help especially when we were not sure what is best for us to buy. Mr Mundi helped us find our dream apartment. Mr. Mundi was always available for any questions or concerns. Mr. Mundi is really knowledgeable in the real estate business and a great professional.  
[LayerSliderWP] Slider not found

Quick Contact

You have reached the entry limit for form. Kindly Contact on our Phone for better assistance. Thanks

Follow Us

facebooktwittergoogle_pluslinkedinrssyoutube