Where is your Comfort Zone?

Affordable One-Time And Monthly Costs

When you buy a home you take on other financial obligations that you must consider in determining your comfort zone. These include:

One-time costs:

Valuation and Inspection. An inspection may identify areas where repairs are required and will assure you that the house is structurally sound. Your mortgage lender can suggest an experienced professional.

Legal Fees. You will be required to retain a lawyer or notary to act for you in the purchase and mortgaging of the property.

Closing Costs. Any amounts that the seller has already paid will be adjusted so that you pay the excess amount to the seller. These adjustments can include taxes, condo fees or utilities.

Moving Costs. Whether the move into your new home is a do-it-yourself affair or you hire movers, there will likely be costs involved.

New Home Costs. You may need to buy certain items early on – appliances, tools, gardening equipment, cleaning materials, new furniture, carpets or curtains.

Monthly costs:

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 fire, and other risks of loss, theft and liability. You will be required to provide proof that your insurance is in place.

Property Taxes. You can remit taxes directly or you may be able to include them in your monthly mortgage payment. Utilities. You will be responsible for all utility bills including gas, electricity, water and telephone.

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.