The costs associated with buying a house, closing the sale, moving house and landscaping can add up quickly. Once the process has begun, you may be asking yourself questions:
- What are the closing costs?
- What is the amount I need for the down payment?
- Will I use movers or rent a truck?
- What will I have to buy after the move?
- How to plan all these costs?
Closing costs are a one-time fee associated with the sale of a home, usually submitted to the buyer for payment three days before finalising the purchase of the home. Most experts agree that you should expect about 3% of the purchase price of your house to cover closing costs. This is true for the Closing Costs in Santa Cruz, CA , also.
Although down payment and mortgage loan insurance are considered closing costs, these costs are not included in the calculation of the 3%. You should also know that mortgage loan insurance, usually required when the down payment is less than 20% can be included in your mortgage payment. You do not have to pay it in full at closing.
What it costs to own
Once you have moved into your new home, you will soon find that there is always something to buy! Some needs manifest themselves from the first day while others arise after a few months. These could include new appliances, floor coverings, fixtures, paint, window accessories, furnace, alarm system, home insurance, insurance mortgage life or seasonal items (rakes, shovels, snow blower, etc.).
The importance of the budget
Establishing and respecting a realistic budget will help you feel more comfortable with closing costs and avoid unpleasant surprises. Good planning and good time allocation of your expenses and payments will be very useful to you to manage all costs effectively. But before you even set a realistic budget, you need to know how much you can afford to pay.
Here’s another budget planning tip: Many real estate brokers and mortgage advisors recommend opening a separate account to manage the funds that will be used to cover closing and moving expenses.
Managing all costs
If you are planning to do business with a real estate agent, notary, movers or other professionals, consider getting an estimate of their services as soon as possible. This will help you determine the cost of these related services in advance and save money. Being aware of and closely tracking each expense is a good starting point for a realistic budget. You will thus be able to respect all of your financial obligations better.
Talk to a mortgage advisor for help with the many costs associated with closing, moving and building your new home. All financing products and residential mortgages are provided by Royal Bank of Canada subject to its usual credit criteria.
The cost of evaluating a property
The buyer may have to charge a fee for the property assessment if he wants to make sure he pays the right price, or if the lending financial institution requires an appraisal to be made. Otherwise, the costs are the responsibility of the owner wishing to know the market value of his residence.
It takes at least $ 350 to get a professional assessment. To do this, the assessor will visit the property to know the dimensions, see the materials used, check the state and apparent age, etc. It will also consider factors such as location, type of property and economic conditions to make its assessment.