Expenses Associated with Purchasing a House

There are many costs that home buyers incur when purchasing a home or property.  Some of the expenses are one-time costs whereas others can be continuing.

Here are some of the things that you need to budget for:

Initial deposit (in the Drumheller market, this is typically between $500-1000 and is considered to be a part of the down payment when the transaction is complete.  However, you will have to write a cheque/bring cash for this amount when you make your offer).
Home Inspection costs.  Once you've made an offer, it's been accepted and your financing is in place, usually a property inspection is scheduled.  This generally costs about $400-$500.

Additional deposit (some Seller's will require an additional deposit after conditions are removed).  This would be negotiated as part as the purchase contract.
Down payment (Typically between 5-25% of the purchase price.  The more you have to put down, the better in the long run!)  The down payment will be due a few weeks before possession.  The lawyers will call you in after conditions have been removed and the paperwork has been completed.  At this point, they will ask you to write a cheque for the down payment.
Legal fees/disbursements.  You can call around, but generally the legal fees are going to be between $1000-1500 although the banks usually make you prove that you have more than that in your bank account.
Insurance- you will need to prove you have insurance on the property and it will have to name the financier as the first name payable.
Taxes - these are adjusted at the lawyers based on when you are purchasing the property.  The lawyer will let you know how much to pay and where/when.
Deposits/Hook up fees for services.  If you're getting utilities for the first time, some companies will require a deposit in addition to the normal hook up fees.  Call each service provider to confirm.
If you'd like more information including contact numbers, give Gary Chambers or Kimberly Suntjens a call or stop by Century 21 Power Realty.ca.