COST ASSOCIATED WITH A NEW HOME

Down payment Costs - Your financial institution may inform you that you do not need a down payment. If you do, down payments can range from 5% to 25% of the property value. If you’re down payment is less than 25% you will need to get mortgage insurance which is an extra fee added to your mortgage.

Closing Costs - Closing costs can include legal fees, property taxes, life insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. Your lender will inform you of these costs after you apply for a mortgage. Some mortgage products may include closing costs, or renovation costs. Discuss these options with your lender.

Other Costs - There are many other costs associated with moving and regular home maintenance, such as:

• Moving expenses
• Changing the locks on doors
• Installing smoke and carbon monoxide detectors
• Deposit and start up fee for utilities, phone, cable and other services
• Immediate repairs or work your home may need, such as cleaning and painting
• New appliances (if necessary)
• Equipment such as lawn mower and hoses to help with maintenance of your home

Click here to find the Glossary of Mortgage Terms and the Glossary of Mortgage Product Terms.

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