Our Pickering mortgage brokers at Group Mortgage Solutions have found that many first time homebuyers forget about some of the most common (but unexpected) costs of buying a home. While they have taken into consideration things like down payment, mortgage pre-approval, and credit checks, they are often shocked to find out about things like appraisal fees and title insurance. Here are a few of the most common unexpected costs that come up in most home buying situations.
1. Land transfer tax
when a home changes hands, many communities and municipalities charge a land transfer tax that ranges from 0.5% to 2.0% of the of the home’s value.
2. Appraisal fee
Your lender may require you to get the home appraised to confirm its value. While these fees vary based on a property’s complexity, you can expect to pay around $400 for an appraisal.
3. Title insurance
An important but sometimes unexpected cost is title insurance. Like how your mortgage pro-approval promises a safety net for a loan, title insurance protects you against fraud or other problems with your property title or survey. Prices range from $150 to $350.
4. Home inspection
4. Home inspection
A necessary evil, a home inspection can make you aware of any issues with your new home, including plumbing, structure and electrical problems. While some buyers in their haste to purchase a new home are doing away with the contingency of an inspection, our Pickering mortgage brokers encourage you to invest in one in almost all circumstances.
5. Legal fees
To properly close a sale; you will need the involvement of a lawyer. They will review your purchase agreement, property title and make sure documents are completed properly. Prices range from $800 and up for this service.
While these are the most common costs, we encourage you to chat with one of our Pickering mortgage brokers at Group Mortgage Solutions to find out about other costs and to learn how we can help you avoid some of these fees.