For many of us, buying our own home in Kamloops is a dream come true. It is the reward for years of saving, planning, and searching for the perfect floorplan and neighborhood. As you plan for this major purchase, it is easy to focus on getting your down payment together and budgeting for monthly mortgages. There are other costs, however, that catches many people by surprise and sometimes raises the total cost of the home by thousands of dollars. Legal fees, inspections, insurance, and appraisals are just a few costs that most home buyers have to pay, but many fail to plan for. “Before purchasing a new home, we recommend you take some time to understand and plan for those expenditures that go beyond the purchase price of the home,” explains Tim Bzowey, vice president, Home and Auto, RBC Insurance. “By doing this, you can budget for the move and not be blindsided by additional costs.”
When purchasing a home, there are many costs to consider. Here are some of the most common:
• Mortgage loan insurance is required if your down payment is less than 20 percent of the purchase price. This is typically added to your monthly mortgage payment.
• Home insurance is often required by your mortgage lender and provides protection against loss or damage of your property and its contents and liability claims. Insurance is commonly paid by the mortgage holder, who passes the cost along to you as an addition to your monthly mortgage payment.
• Appraisal fees may be payable if the lending institution requires that your property be appraised. Most lenders require an appraisal to ensure the property is worth the amount of the mortgage. This is a one-time cost payable at closing.
• Legal fees include reviewing the offer, drawing up the title deed, conducting a title search and preparing and registering the mortgage. This is a one-time cost payable at closing.
• A home inspection could help evaluate any structural and mechanical problems with the property before you purchase. Although this can be an optional cost, it is highly recommended. This is a one-time cost that is typically paid for at or before closing.
• A property survey may be required to verify the location of the property's boundaries, measurements and structures and any registered or visible easements or encroachments on the property. This is another one-time cost payable at closing.
In addition to these closing costs, a buyer should also be prepared for “all the small stuff” that comes up when moving into their new Kamloops home. It is common to need draperies, fans, lawn tools, and even small furniture or similar items as you get settled into your new home. Smart home buying includes a budget for these incidental needs.
Owning your own home is an exciting dream that can be your reality with research, planning and patience. When you are ready to sell your Kamloops home or relocate to the area, call me, Eric Putoto!
Eric Putoto (Personal Real Estate Corporation) is the ONLY Canadian Realtor to have been granted an exclusive license for the most advance home selling system ever developed: The “Maximum Value Home Selling Systems."TM