First Time Home Buyer Questions

First Time Home Buyer Milton
What Will the Down Payment be?
A down payment is the part of the home price that does not come from the mortgage loan. The down payment comes from your own money. You can buy your home with a minimum down payment of 5% or for a conventional mortgage, your down payment must be at least 20%.

How Much is the Deposit?
The deposit is paid when you would like to submit an Offer to Purchase (this is to show you are a serious buyer). The size of the deposit varies, and the deposit will form part of your down payment with the remainder owing at time of closing. If for some reason you back out of the deal without having covered yourself with purchase conditions, such as financing, home inspection, etc., your deposit may not be refundable, and you may be sued for damages.

What are the Legal Fees?
When you purchase a home, you need to hire a lawyer to complete a title search, ensure that all the documents have been completed properly, register your mortgage and register you as the new owner of the property. These costs will vary, as it all depends on where you live and what property you plan on buying.

What is the Appraisal Fee?
Your mortgage lender may ask you to pay for a recognized appraisal to complete a mortgage loan. An appraisal is just an estimated value of the property and these fees vary.

What is the Property Inspection Fee?
A home inspection is typically a condition on your Offer to Purchase. The home inspection is done by a qualified home inspector to help provide you with information on the condition of the home. These fees typically range from $400 to $800.

What is the Cost of the Title Insurance?
Your lender or lawyer may suggest that you get Title Insurance. This will cover almost all loss caused by defects of title to the property. Title Insurance fees varies with properties and price range.

What about Prepaid Property Taxes?
Property taxes are charged by the municipality where the home is located. They are based on the value of the home. The seller may have already paid property tax or other expenses that apply to the time after the house passes into your hands. You will need to pay the seller back.

What are Other Costs to Consider When Buying a Home?
Depending on your situation, you may have some expenses to consider such as moving, renovations, repairs, fees (telephone, gas, electricity, cable TV, satellite TV, Internet etc.).