Budgeting for Title Fees, Closing Costs and Home Inspection Costs
Buying a home is an event filled by euphoria. When the escrow process commence, this euphoria can quickly turn to frustration especially if you haven’t budgeted for the costs that you’ll notice will add up very quickly.
Closing costs are the fee’s which you incur on escrow process in the property transaction. Many people assume that all they’ll need is cash for the down payment.
The excitement of getting your offer to buy a home can be too much and this can make you fail to take note of the fact that you will need an adequate amount of cash to pay for the property and will need additional funds to cover closing costs.
For example: Condos within the North York area could cost you a considerable amount of money both directly and indirectly and it is important you factor unknown costs when working out your budget when searching for your home.
For a condo you will need to get a copy of the buildings statues certificate – A document that breaks down the financials for the building. Your lawyer will review the information within and notify you if there are any issues.
If you are purchasing a home, you will require enlisting the services of a professional home inspector. By doing this, you will be able to reveal both major and minor issues with your home that you may not be noticeable to the eye during the showings. These issues may include water leaks, termites, rot and the list can go on and on. The costs of a home inspection will vary depending on the size of your home. Setting aside a few hundred dollars would be a wise decision!
When buying a property, building or home, title insurance is critical. Title insurance provides both you and the lender with superb protection. A reputable company will do a comprehensive search of the title and provide you both the assurance that the title for the property is good. They confirm that the seller of the property is the owner and has all rights to sell you the property. A title company also ensures there aren’t liens or encumbrances that have been attached to the property because this could cause several unnecessary problems. Title fees could cost a few hundred dollars and is calculated based on the value of the property.