When you buy a home you take on other financial obligations that you must consider in determining your comfort zone. These include:
Valuation and Inspection. A valuation report estimates the current market value of the land/property to be purchased. It basically satisfies both you the purchaser and lender that the desired property is owrth the price you are paying, or the amount that we agree to lend.
Legal fees. You will be required to retain a lawyer or notary to act for you inperfecting the mortgage.
New Home Costs. You may need to buy certain items early on –appliances, tools, gardening equipment, cleaning materials, new furniture, carpets or curtains. Start saving today!
The Mortgage Payment. The amount of the mortgage payment can vary widely based on a number of variables including interest rate, term and size.
Property insurance. All homes must be insured against fires and other risks of loss, theft and liability. You will be required to provide proof that your insurance is in place.
Insuring your biggest investment is important . Property insruance protects you and your family against any unexpected loss.
Maintenance. You will have to cover the costs of maintenance, lawn care and renovations.
Condominium or Townhouse Fees. If you purchase a condominium or a townhouse, you may be required to contribute to the upkeep of the common grounds and public areas. Your property manager or condominium association can provide full details.
Life Insurance. You may be required to provide life insurance as collateral security for the mortgage. Although life insurance is a requirement, it provides financial support for existing debts and the future living costs of your dependents.