Preliminary Costs To Buying A Home

Submitted by: Adam Hungle

Buying real estate can be an expensive endeavor. For many, buying a home is very stressful financially. This usually happens because the buyer is not aware of some of the expenses they may incur. Here is an overview of almost everything that could happen when someone chooses to buy a home in Saskatchewan. Note that all costs are approximate.

Payment – You should be aware that your lender will insist on you putting some money down as a downpayment on the home. You will be held between 5% and 20% of the purchase price, depending on your personal situation.

Appraisal – The lender may want an appraisal on the home to insure that you are not overpaying for the home and they can recoup there investment if needed. The approximate cost of a lender ordered appraisal is $ 200 to $ 300 and can go much higher for unusually large properties or properties located outside the city.

Mortgage Application Fee – In the past, many lenders have provided a mortgage application fee to process your funding request. Most major lenders have stopped doing it. There should be some shopping around to find a lender that will not charge charge for this. This fee is usually between $ 75 and $ 150.

CMHC Registration Fee – If you are thinking of putting a down payment of less than 20% you will have to pay $ 235. This fee does not include the assessment or insurance charge, which varies from 0.5% to 3.75% of the amount borrowed. This charge is usually added to the amount of whole loan, rather than paid in advance.

Inspection fees – For a home inspection you can budget $ 375 to $ 500 for this expense. Again, this cost is potentially higher for exceptional sized homes, or properties located outside the city.

Insurance – Your lender and of course your common sense will ask you to buy insurance to protect against a loss due to fire or other tragedies. You might also want to protect the contents of the house. A home insurance policy can cost as little as $ 400 and will increase as the value of the home is increased and also depends on the value of your belongings. An insurance agent can give you an idea of ??how much to budget. Let them know how much you are planing on spending on a house and the approximate value of your belongings for a quate.

Transfer land tax – currently there is no transfer tax impact on the land in Saskatchewan.

Utility Connections – A budget of about $ 200 is a good number for utility connections.

Adjustment costs – There may be adjustment costs that apply to your purchase, you should be aware of this in advance. The seller may have already paid local property taxes beyond the time of possession. In such cases the purchaser will reimburse the seller on a pro rated basis from the date of possession to the end of the tax period. You may also be required to pay the seller an adjustment of interest on any part of the purchase amount that is not received by the seller on possession. Saskatchewan Land Titles system normally takes up two weeks for the transfer of securities and may last longer, hence the title delays. The seller will not receive purchase funds until the title transfers and are generally compensated by the adjustment of interest.

Registration of title – You must register your title with land titles in Saskatchewan. The price varies depending on the value of the property. It costs $ 2 per thousand of purchase price, plus $ 20 usually by a lawyer and is billed to you as a disbursment.

Mortgage Registration – If you take a mortgage to finance part of your home purchase, the lender requires that the mortgage is recorded against the property. The price depends on the amount of the mortgage. The cost is $ 2 per thousand, plus $ 20. Typically, the lawyer and the fee will be charged to you as a disbursment.

Other disbursements – The lawyer in charge of your purchase will have to find the title and doa tax search to ensure that you receive the title of the home “free and clear”. They will charge back any costs incurred on your behalf to complete the transaction, including photocopying, postage, etc “other expenses” are usually in the area of ??$ 90 to $ 150.

Legal fees – legal fees of course vary with the amount of work that is required to a particular file. They will normally cost from $ 500 to $ 700 to registar the title. If there is a mortgage, the lawyer will charge a similar fee to prepare and register the mortgage on the title of the property.

Surveyor s Certificate or Real Property Report – lenders usually require these reports to verify that buildings are owned loacated onthe property. In many cases, the seller will have this reprt in his possession. Always ask the seller to provide it in an offer. If the seller can not provide it, it can cost between $ 400 and $ 500.

Moving Costs – If you decide to hire a professional moving company there will obviously be additional costs, which vary considerably depending on the distance you are moving and the movers usually charge hourly. Call a couple of companys for a quote.

Generally, the budget of 1.5% of the purchase price of your home to various closing costs can provide sufficient funds to cover your expenses.

About the Author:

Regina Real Estate, Real Estate ReginaSk Homes For Sale, Regina Real Estate,

Source:

isnare.com

Permanent Link:

isnare.com/?aid=987438&ca=Real+Estate