The most important thing to remember when a first time buyer is buying a home is, can you really afford it. No one wants to be “house poor”. That is when you have a lovely home with a really big house payment and you can’t afford to go out to eat occasionally because the house payment is breaking you every month. Don’t over extend yourself with a high mortgage payment. If you take the time to put together a budget you can realistically calculate what you can reasonably afford monthly. There are many online mortgage calculators available or you could call a lender or real estate agent for advice.
If you want to purchase a home for $150,000, if you want to put down 5% you would have to save up $7,500. The larger the deposit you make the cheaper your mortgage will be!
There are additional costs which may be involved when buying a house.
- Survey Cost
- Appraisal Fee
- Initial furnishing and decorating costs
Mortgage arrangement and valuation fees.
Some lenders charge a mortgage fee. It may be refundable if the mortgage falls through before the house is closed. The appraisal fee is a fee charged by the lender to have the property evaluated to determine the value. This is to check to see it’s worth the mortgage amount, protecting the lender’s investors. There is a tittle search fee. This is to check to make sure that there are no local issues that may affect the property value such as any liens or judgments against the property. These things will be paid in full at the time of the sale, insuring you get a clean and free title of the property. There may be property taxes due, from the previous owner. These will be paid at the time of sale.
These are just a few of the costs to consider when purchasing a home for the first time. If you are interested in purchasing a home in Fort St. John and have any questions about what you can afford, call me and I will answer any questions you may have.