Finding homes for sale Edmonton can be exciting but can also be tough work. In preparing to buy your dream home, it is essential to be aware and ready throughout the transaction process, which would help minimize unexpected costs and financial stress.

 

Introduction

 

Real estate closing costs are usually neglected in the plan of buying a new home. Thinking that you already had saved enough for the downpayment and allotted a budget for a mortgage, you get surprised with extra closing costs to be paid for. Depending on several factors, it is best if you allocate at least 2 percent of the total amount of the house, for the additional costs, including mortgage insurance.

 

Closing Costs to Consider

 

1. Authorized Fees. On your behalf, a lawyer from the real estate ($500-$1000) will take care of all the legal transactions in purchasing your home. Transactions include initiating title search, providing the insurance title, and registration of important documents such as the transfer of the land title.
2. Costs of Adjustment. You should repay the seller of the costs that he/she had fully paid on any utility expenses or house taxes before the deal was closed.
3. Insurance of Property. The costs range from 700 USD to 1000 USD if fully paid, or about 60 USD to 90 USD for monthly payment.
4. Transferring costs. These expenses cover the costs of hiring a moving truck or buying moving boxes and supplies, in renting storage spaces, cleaning, installation, and other setting-up services before moving to your house.
5. Property assessment. In case you would want to make sure that your place is safe, hiring a professional inspector would cost you $350-$500.
6. Evaluation of Property. To be able to get a current and exact appraisal, you might need to have your property assessed. The cost is about $300-$500.

 

Costs Usually Paid by the Previous Owner

 

1. Insurance Title. Title insurance ($300) guarantees the value of the title and the place itself—proving compliance with the laws in the area and safety from land encroachments.
2. Estoppel Letter Fee. This document applies when you buy a condominium, stating that the seller doesn’t owe any more condo payments.
3. A survey within the Premises. Paid for by the seller, a document informing you of any borderline and development locations within the premises should be secured. The report will also include any problems related to property boundaries.

 

Although incomprehensive, the costs stated above are estimates that will guide you in your plan to buy a home. A licensed realtor can give you detailed information regarding the closing costs.

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