|
Mortgage Costs
…Know in Advance How Much You'll Need
to Close
Most
people buying a home need a mortgage. In the past, arranging a
mortgage was left to the end, sometimes after a house was bought –
forcing borrowers to scramble for financing. But things have
changed.
It’s
imperative that you shop for a mortgage before you purchase a home.
Most lenders will pre-approve buyers for a mortgage – some even over
the telephone or Internet. It’s a no-cost, no-obligation deal that
lets you know how much you can afford before you start house
hunting, plus you will be protected against interest rate increases
within a specified time limit.
Before advising your realtor of your mortgage approval limit,
consider the typical expenses that must be paid before the house can
become yours.
-
The Basic Purchase Price
-
Mortgage Application & Appraisal Fees
-
Property Inspection (optional)
-
Legal Fees
-
Legal Disbursements
-
Property Survey (if not provided by the
seller)
-
Land Transfer Tax
-
Adjustments for Utilities, Taxes, etc.
-
Mortgage Insurance
-
Home & Property Insurance
-
Moving Expenses
Also
consider the typical monthly costs that come with home ownership,
such as mortgage payments, maintenance, insurance, condo fees,
property taxes, and utilities.
Knowing all the costs involved and being prepared with a
pre-approved mortgage, you can confidently negotiate the purchase of
your new home. |
