FINALIZING THE DEAL
The day you purchase your home is very exciting and there’s a lot happening in a short period of time. Here are some of the things that you’ll be taking care of as you close the deal.
Total closing costs range from 1.5 to 4% of the overall price of your home. Most are legal, disbursement, administration fees and land transfer tax you will need to pay to complete the purchase of your home. It is important to note that you must show your lender that has these available funds before the closing date. In addition to closing costs, be aware that you may also need to open accounts for gas, electricity, cable, internet and so on.
A home appraisal will give you a definite evaluation of your properties’ market value. It is done by an authorized appraiser. The appraiser will determine the value of the home to ensure that the price reflects the home’s condition, location, age and features such as the number of bathrooms. This usually costs between $300 - $500 plus tax.
LAND SURVEY OR CERTIFICATE OF LOCATION
If the seller cannot provide either of these documents, you may be required to purchase one to finalize the mortgage loan. The survey will show: (1) The size and shape of the property, (2) the underlying legal lot pattern, (3) location of rights of ways and easements, and (4) provide a designation of pertinent ownership document. The cost of the survey depends on many factors. It’s best to ask your real estate agent to recommend a local licensed surveyor or so you can get an estimate.
A deposit that counts toward your down payment is needed when you make your offer to purchase (mentioned above). The deposit shows the seller you are legitimately interested in purchasing.
If you need mortgage advice you can trust, we’re here for you. Just give us a call at the True North Hub at 1-866-413-7071 or book an appointment with a Mortgage Expert.