When buying a home, you have more than likely heard of the term: “closing costs”- and may have concerns!
Understanding closing costs is a big part of buying a home, and with the right guidance, they should not be feared.
Helping clients buy a home often requires communicating a great deal of new information – some of it complicated. This closing costs guide was created to do just that.
Check it out and give me a call if would like to discuss my helping you buy your next home- helping you buy is what I do!
Closing costs are a necessary part of home buying, and like the down payment, must be proven to the lender, as readily available in order to receive mortgage pre-approval.
As closing costs are directly correlated with the purchase price of a home, lenders require that the home buyer has 1.5 to 2% of the purchase price set aside for closing costs. It is important to note that this amount will be in addition to the down payment. The following is an example of what you might expect for closing costs when buying a home:
|Legal Fee (vary between firms)||$800-$1000|
|Land Titles Registration – e.g. on a $400,000 purchase at
($3 per $1000 of purchase price)
|Registration of the Mortgage||$150|
|Land Title Submission and Output Fee||$20|
|Land Title Copies of Title||$30|
|Courier Charges (depending on distance)||$10|
|Tax Search, Postage, etc.||$30-$50|
In addition, there will also be:
• Property Tax Adjustment: Your lawyer will calculate the amount of property tax the seller paid that goes beyond the seller’s time in the home. This can amount to a few days, weeks, or months.
• Fire Insurance: This must be in place for mortgage funds to be released.
• Property Appraisal: if the lender makes a request, this can cost approximately $400.
• Professional Home Inspection: prior to completion of the sale, $350-$450.
• Title Insurance: Safeguards against fraud and problems with the property title or survey. $150-350.
• Interest Adjustment: In Saskatchewan, the requirements for taking possession of a property are that you need to have mortgage commitment papers signed, and the cash portion (down payment) paid. In the meantime, the title transfer will be in process. Depending of the time of year, it can take 3 to 10 days for land title to complete. Once the title is registered, the lender will allow the mortgage funds to be released. Interest adjustment will have to be paid to the seller for the time during which possession of the property has changed over to the buyer but the mortgage funds have not yet been released.
When buying a home, you want to be sure you have all of the fine details accounted for in advance. For this reason depending on a trusted real estate agent, committed to helping you buy, is crucial. Contact Mercina Kokkas today – and have the advantage of a top agent at your side.