Additional Expenses to Include In Your Budget

Reblogger Roy Kelley
Education & Training with Realty Group Referrals 16766

Buying a home can be a very emotional event... and it can be very stressful ...  and in the excitement of the process, it's all too easy to forget the additional costs involved in any transaction of buying a home. 

SOME ADDITIONAL EXPENSES TO INCLUDE IN YOUR BUDGET

Buying a home can be a very emotional event... and it can be very stressful ...  and in the excitement of the process, it's all too easy to forget the additional costs involved in any transaction of buying a home.  Keep in the mind that buying a home is one of the largest financial investments you will probably make and planning and budgeting for it is essential.  Talk with your agent and find out about them, and budget for them in the home buying process.

A Few Additional Costs You May Incur to Include In Your Budget

House Inspection This is an absolute must have, for both re-sale and newer homes.  Ask your agent to insert that condition in your offer. Home inspections usually take about 2 - 2 1/2 hours and the cost will range from $375.00 - $450.00 depending on the size of the home, and whether the basement is finished.

Appraisal When applying for your mortgage for your new home, most financial institutions require that an appraisal be done to determine how much they are prepared to lend you.  If this is not covered in the cost of the mortgage, it usually runs about $200.00 - $250.00.

Mortgage Costs Discuss the various payment options with your financial institution i.e. monthly, bi-monthly, weekly etc., to determine which one suits your needs.. Also discuss types and terms of the mortgage.  Types would open, closed, etc. and term means how long these rates will apply, i.e. 6  month term, 2 year term or 5 year term.  Amortization would indicate the total length or amortization period of the mortgage, i.e. 20 year, 25 year, etc. It would be advisable to obtain a pre-approval from your bank and lock in the interest rate while you shop for your home.  This way, if the rates increase, you are locked in... If the rates decrease, you can get the lower rate. These are normally valid for a period 90-120 days.

Insurance If you are only putting 5% down on your mortgage, mortgage insurance is mandatory, and usually a requirement with a 20% down payment, or less. It can include a minimal charge and would be slightly higher if you are self-employed without benefit of third-party verification of income.

Title Insurance Title insurance is a one time charge that you can ask your lawyer to include in your closing costs.  This will cover any unforeseen issues that you were not aware of that could appear after closing.  Title Insurance costs depend on the value or purchase price of the home, but an average cost is about $250 - $300 and is a one time charge.

Survey A survey document is an up to date document showing the exact property line, and all buildings, fences, etc. located on the property.  In many cases the Vendor will have one, and if your lawyer insists on having one, plan on spending about $1,000 - $1,500.  This would be beneficial if you are planning on making any changes to the property, i.e. installing a fence around the perimeter, installing a pool, etc.

Home Insurance This can sometimes be overlooked when calculating your monthly costs. Get a few quotations and make sure your enquire about any separate riders you may need for jewellery, furs, art, antiques, etc.

Condo Costs Some condos fees include costs such as hydro, heat, roofs, parking, windows etc., but some do not. These can be found in the Status Certificate, which your lawyer will review.  He/she will look for any deficiencies in the financial position of the condo corporation, ensure the insurance on the property is sufficient and in place, any special assessments that may be coming up, and a review of the monthly condo costs.

Legal Costs and Disbursements I would recommend you call at least 2 lawyers and ask what their fees are for closing on both buying and selling... and be sure to ask for the cost of disbursements.  Your lawyer will check the title to the property to ensure it is free and clean of liens or encumbrances.

Land Transfer Tax This tax is levied on every purchase and covers the cost of transferring the property from the previous owner to the new owner.  There are sometimes reductions offered by the Government for first time homes buyers, or senior buyers.  It usually calculates to be about 1% + - of the purchase price.

Repairs The house inspection will usually reveal small repairs or items to make note of for future repairs.  Sometimes it is just a bit of paint, of replacing an electrical outlet.. or as large as replacing the roof, or furnace. Take note, or bring a camera with you to record what repairs must be made, and also those repairs you would like to make in the future.  Your house inspector can offer an estimate on the cost of these repairs.  Your home inspection will usually be in written form and you will have a copy of any deficiencies the inspector noted in his report.

Replacements Make room in your budget for replacement items, such as window treatments, new appliances, or replacing the carpet with hardwood floors.  Costs will vary, depending on the items you choose to replace, but once again, get more than one quotation.

Moving Try to avoid moving at the end of the month, as moving companies normally charge a higher rate... June 30th is a date to avoid at all costs.  Get at least 2 estimates, and if you are moving small items yourself, make sure to include the cost of the small truck rental. Ask your Realtor to help with an approximation of the costs involved so you can budget for them..... The last thing you want are unexpected costs that could sabotage your purchase..... be prepared before you go shopping for that new home and know exactly what it will cost...

Benefits of me

Your Trusted Streetsville|Mississauga Real Estate Professional

When you choose me to handle your real estate needs, you are choosing a real estate professional who:

  • cares about you and your family

  • will listen to your needs

  • work together with you, and

  • protect your interests to achieve your objectives

Visit me on Facebook:  www.facebook.com/STREETSVILLEREALESTATE

Follow me on Twitter:   www.twitter.com/streetsvilhomes

www.mississaugarealestateonline.com

Experience, Service and Integrity in Every Real Estate Transaction

I am the proud recipient of the Quality Service Certified Platinum award for outstanding service to my clients - a rating of 100%

Dedicated to providing outstanding service one would expect, and deserve from a real estate professional.

                                                                                                                                                                                                                                

Mississauga and Streetsville Real Estate


When you choose me to handle your real estate needs, you choose a real estate professional who cares about you and your family, who listens to your needs and who will put your interests first and foremost. I will work together with you, protecting your interests, to achieve your objectives.

I have been uniting families and homes for more than 31 years.. Let me put my 31+ years of knowledge and experience to work for you when selling or buying your next home.

 

Proud recipient of the Platinum award for outstanding serivce with a rating of 100% voted by my clients!!

A great experience starts with a great agent !

Helping You Make The Right Move since 1987. 

Call me at (905) 896-4622 or direct at (416) 717-6331

 www.mississaugarealestateonline.com    gvalvasori@gmail.com            

              

 

No part of this publication, may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, or electronic methods, without the prior written permission of the publisher.  Copyright © 2018  Gloria Valvasori, all rights reserved.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,161,439
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

This was a good choice for a reblog!

Apr 24, 2018 03:30 AM #1
Rainmaker
3,961,507
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I will share it with buyers.

Apr 24, 2018 04:13 AM #2
Rainmaker
4,207,027
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the re-blog, Roy.  Good information for all of us.

Apr 24, 2018 04:47 AM #3
Rainmaker
2,736,162
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Many Buyers and Sellersa are not aware of additonal costs and who pays what...a net sheet with this information is a must for every agent.

Apr 24, 2018 04:52 AM #4
Rainmaker
4,560,837
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Please be sure to leave comments at the original blog by Gloria Valvasori, Accredited Senior Agent

Apr 24, 2018 05:02 AM #5
Rainmaker
528,833
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Thank you Roy Kelley for the re-blog... again.. much appreciated.. have a great day!

Apr 24, 2018 05:06 AM #6
Rainmaker
528,833
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Good morning Sally K. & David L. Hanson , thanks for stopping by to read my blog.

Apr 24, 2018 05:07 AM #7
Rainmaker
528,833
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Good mroning Gabe Sanders Thank you for taking the time to stop by and read my blog and for your comments.  

Apr 24, 2018 05:07 AM #8
Rainmaker
528,833
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Hi Gita Bantwal thank you so much for taking the time to post your comments.

Apr 24, 2018 05:08 AM #9
Rainmaker
528,833
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Hi Kat Palmiotti thanks for taking the time to read my blog, and for posting your comments.

Apr 24, 2018 05:08 AM #10
Rainmaker
4,560,837
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs
inGaithersburg Spring Editionmagazine
Focusing on life in Gaithersburg, our general interest magazine covers unique aspects of a dynamic and diverse community. In this edition you'll find stories about literacy initiatives, including Little Free Libraries; recording studios and other music programs in Gaithersburg; a loan program to help residents age in place; an in-depth exploration of the new Police body-worn camera program; the importance of stormwater management; and a sampling of the professional certifications and designations held by City staff. The magazine also includes a list of spring and summer events and municipal resource information. Look for it in your mailbox, pick up a copy at any City facility, or read it online here.
Apr 24, 2018 12:59 PM #11
Rainmaker
1,331,789
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

Yes, there are so many expenses that can be overwhelming and unexpected in home buying process. 

Apr 24, 2018 01:18 PM #13
Ambassador
3,634,411
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We have similar taste. This is one I have scheduled for a reblog too.

Apr 24, 2018 08:04 PM #14
Rainmaker
4,560,837
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much for your comments. It is always good to receive your feedback.

Apr 25, 2018 05:32 AM #15
Rainmaker
2,557,914
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Roy,  Great reblog of Gloria that I miss the first time around.  Thanks for pointing it out.

 

Apr 25, 2018 08:52 AM #16
Rainmaker
4,560,837
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs
La Milla de MayoMilla
Get ready, Olde Towne - La Milla de Mayo is back. Now in its third year, this partnership with the Montgomery County Road Runners Club brings a one-mile run/walk and block party to the streets of Olde Towne. It takes place on Saturday, May 5 from 5:30 to 7:30 p.m. The fun starts with free half and quarter mile Kids Fun Runs followed by a chip-timed, one mile race along Diamond Avenue. Runners and non-runners can enjoy music, food, Salsa dancing and other activities in the newly redesigned Olde Towne Plaza. A portion of the proceeds benefits City of Gaithersburg summer camp scholarships. Explore the event and register to run here.
Apr 28, 2018 01:30 PM #18
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
4,560,837

Roy Kelley

Roy and Dolores Kelley Photographs
Ask me a question
*
*
*
*
Spam prevention