When you’re looking for a new place to call home, there is a lot of preparation and expenses that are involved. For those who are first-time home buyers, the expenses tied into purchasing a home may come as a shock. Listed below are expenses you should expect, as well as seven things you should avoid doing while searching for a new home.
Expenses to Expect
- Deposit: typically 5% of the purchase price of the home
- Home inspection: optional – typically $150-$500
- Appraisal fee: sometimes waiver by the lender – typically $300
- Closing costs Aka legal disbursements and fees: on a home purchase of $600,000, this will typically amount to approximately $10,000
- Lawyer fees: typically ~$1,500
- Other ongoing home expenses: hydro, water, gas, condo fees, home insurance, mortgage payments, rental items (hot water tank), general maintenance (all expenses listed are typically paid on a monthly basis)
Expenses & Situations to Avoid
1. Avoid making an uncertain career change. If you happen to change careers, get laid off or lose your job while searching for a home, please advise your Realtor and mortgage lender as soon as possible
2. Do not forget to pay any of your bills as this will affect your credit score
3. Evaluate all of your purchases and avoid all unnecessary expenses
4. Hold off on purchasing an abundance of furniture prior to purchasing or closing on a home
5. If you are thinking about buying a new vehicle or making a large purchase of any kind, speak with your mortgage agent prior to doing so.
If you keep in mind the necessary expenses to purchase a home and follow our advice above, we promise that you will be in a better place to purchase a home when the time comes and that you will feel more prepared when these expenses are due.
If you have any questions at all about the home buying process or would like to learn how you can begin your pre-approval process, send us a message. We would love to assist you.