First Time buying continued

Last time we talked about some of the priorities which I am sure you can make a much larger list than I mentioned. 

Today I want to talk about some information that the in house  mortgage broker at our Re/Max office mentioned at the sales meeting last week.  That is the closing costs which are due in every home, townhome, condo or mobile purchase. He says that the banks are asking where are the homebuyers getting thier closing costs from. Are they in a bank account alread, is it goin got be a gift from a relative, friend, or some other source and what is that source. The costs are the notary fees could be as high as $1200.00 it is good to check before hand to know what that is going to be. Thier job is to conduct a title search, (we already have that information as a subject in the offer I have written for you, but they also need it) they will draft the title deed and prepare the paperwork for the mortgage.

There may be appraisal fees which the bank may need could be 250-350 bucks. Sometimes a survey certificate is needed in liew of that then title insurance may be required. There is a cost to both of these anywhere from 400 to 2000 but you will only need one or the other not likely both.

A hoome inspection is a great idea and they cost in the neighbourhood of 450 bucks.

The adjustments are for things like the balance of property taxes for the year, if it is strata the strata fee for the balance of the month. Pehaps the balance of water and sewer costs that have been prepaid. Sometimes there will be a balance owing you in the taxes if it is before June 30 but then you will have all of the taxes to pay for the year.

If you are a first time buy here in BC there is no property transfer tax at this time October 26, 2009, If you are buying a home in two names and one of you have owned a home before then you will have to pay the property transfer tax at half of the amount. That is 1% on the first 200 thousand of purchase price and 2% on anything above that up to 425 thousand. So for example if you purchased a home for 300 thousand the full property transfer tax would be $4,000.00 you would have to pay half of that if one of you has owned a home before.

Going back to the mortgage company wants to know where the money is coming from they would like to see it in a bank account already or in some form of unencumbered situation. in other words not putting on a credit card to add more monthly debt.

Until next time have a great week.If you are looking for real estate give me a call.

Thanks for reading.

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