Newbie Homeowner Question

[MikeMc]

My wife and I are just in the final stages of purchasing our first home (it's a previously owned/used house, not a new build), which is exciting and terrifying all at once.

I have gone over the numbers a million times and it's within budget but I have this nagging feeling I'm missing something. A cost I'm not budgeting for, a consideration i haven't thought of. I'm hoping some experienced home owners could weigh in on some typical gotchas for new home owners.

Any help would be appreciated.

I've considered the following:

• Home inspection.
  
• Mortgage rate worked out.
• Property tax.
• Bill pricing estimate has been estimated with input from houses of similar size/area.
• Need/want for updated furniture
  
• Lawn 'stuff' needed.
• Small house maintenance/updating.

[PsYcNeT]

A surprise for me was 7k tacked onto the purchase price of the home (purchased at 390k, paid 40k down, "actual" cost of the home was 357k) for taxes.

On a positive note, you can apply for a $750 new homeowner credit next year!

[ken0042]

Biggest thing you are missing- insurance. I was surprised at how much more it was than tenant insurance.

How old is the house?

[Regulator75]

^^^ This.

[speede5]

Are you putting 20% down? Cmhc is a big chunk added to your mortgage if you aren't.

Try and have 2 months worth of mortgage payments saved for an emergency. Not hard to do if you put a little away every month.

A furnance dying in the middle of winter can set you back $5000, a water heater $1500.

Get a home inspection and make sure hey go over the house with a fine tooth comb. ASk around and get a home inspector who knows houses/construction/code, not some guy who took the $300 weekend inspectors course. Even if the house is new you should do this.

[flambers]

Originally Posted by MikeMc

I've considered the following:

• Home inspection. ~ $500
  
• Mortgage rate worked out.
• Property tax.
• Bill pricing estimate has been estimated with input from houses of similar size/area.
• Need/want for updated furniture
  
• Lawn 'stuff' needed.
• Small house maintenance/updating.

Moving Cost if applicable

Bank Appraisal ~ $400

Legal Fee's ~ hourly

Bank Fee's ~ they will negotiate (I was able to have mine eliminated).

Utilities hookup Fee's if applicable (TV, Telephone etc.).

[Travis Munroe]

congrats on the purchase.
Where did you buy?

[MikeMc]

Originally Posted by ken0042

Biggest thing you are missing- insurance. I was surprised at how much more it was than tenant insurance.

How old is the house?

House was built in 1998. I budgeted for house insurance based on info from our insurance guy. Sorry I should have mentioned that as well.

[MikeMc]

Originally Posted by fotze

What rate did you get?

2.99 fixed for 5. Pushing for an exception to being it to 2.89.

[MikeMc]

Also - Anyone know if it's an uncommon ask to push back the initial mortgage payment 60 days?

Thanks all.

[me_dennis]

Lawyer fees for closing of the purchase. This can cost anywhere between $1000 and $2000.
Also, blinds/window coverings are an added cost too, but you may already have some blinds/curtains installed from the previous owner.

I would also think about a furnace cleaning.

[Regulator75]

Carpet cleaning.

[normtwofinger]

Painting if you don't like the colours. Pro painters charge quite a bit.

[Regulator75]

Re-keying the locks. Not too expensive though, runs around $125.00 or so.

[troutman]

http://www.lawsociety.ab.ca/public/l...ying_home.aspx

What other costs will you have?

There are other costs besides the actual purchase price involved in buying a home. Your lawyer can help you to understand the other costs involved. The following is the suggested check-list of cost items that you should discuss with your lawyer during the first interview:

1. Legal fees - The fees for your lawyer's own services, which may also include a component for out-of-pocket expenses or disbursements.
2. Property tax adjustments - A portion of the year's property taxes which are credited to the Seller if the Seller has already paid them, or credited to the Buyer if the Buyer will be required to pay them. If you're obtaining a new mortgage, the mortgage company may wish to hold back future taxes as well.
3. Transfer registration fees at the Land Titles Office. The Land Titles Office charges fees to register documents transferring ownership of property from one person to another. An additional fee is charged for registering mortgage documents.
4. Insurance for fire and other hazards.
5. Late interest charges. The mortgage company will not advance funds until title is transferred into your name and the lender's mortgage is registered in the Land Titles Office. Because it takes time to register these documents at the Land Titles Office and to obtain the mortgage advance from the Lender, the sale price may not be paid to the Seller until after the possession date. Until then, you will be unable to pay the Seller the full purchase price and will probably have to pay interest on the unpaid amount.
6. Opening of utilities account.
7. Goods and Services Tax (GST). There is a GST cost to the Buyer on the purchase of most new housing, although the Buyer will get a partial rebate if the purchase price is less than $450,000. Most purchases of used housing will not require you to pay any GST. The Seller should give you a written statement that no GST is payable. There is also GST payable on your lawyer's fees and disbursements and surveyor's charges. Currently, there is no GST on the Land Titles registration charge.
8. Appraisal and inspection fees (if obtained).
9. A real property report.
10. Any time a new mortgage is obtained in real estate there are costs associated with it. Your lawyer can advise you about these costs.

https://www.libro.ca/learn/Library/L...se%20costs.pdf



http://www.atb.com/learn/articles/Li...ost.aspx?ID=35

Here’s a basic rule of thumb:

• Plan on spending about 2 per cent of your purchase price on additional costs.
• If you have a down payment of less than 20 per cent, another 1–2.75 per cent of the mortgage amount will be added to your costs, although this is usually added to your mortgage amount.

[albertGQ]

Originally Posted by MikeMc

2.99 fixed for 5. Pushing for an exception to being it to 2.89.

That's a great rate. Did you go to a bank or through a broker?

[MikeMc]

Originally Posted by albertGQ

That's a great rate. Did you go to a bank or through a broker?

Through a bank, I think most banks are offering the 2.99 fixed right now. Probably adds to the crazy sellers market Calgary currently is.

[JMN]

2.94@5 year fixed through True North

[Wormius]

Originally Posted by normtwofinger

Painting if you don't like the colours. Pro painters charge quite a bit.

Agree with this. Do these things before you move in, because they become exponentially more of a pain in the arse once you have furniture moved in.

Also budget for major appliances, if you don't like the ones the previous owners will leave behind. Our 1996 house had pretty dated stove and fridge and washer/dryer. Other stuff you'll need - ladders - one telescoping and one step ladder.

Did I miss something though, you (OP) haven't had the home inspection done yet?

[MikeMc]

Originally Posted by Wormius

Agree with this. Do these things before you move in, because they become exponentially more of a pain in the arse once you have furniture moved in.

Also budget for major appliances, if you don't like the ones the previous owners will leave behind. Our 1996 house had pretty dated stove and fridge and washer/dryer. Other stuff you'll need - ladders - one telescoping and one step ladder.

Did I miss something though, you (OP) haven't had the home inspection done yet?

It's lined up for Monday, so the purchase isn't finalized yet.