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Costs associated with first time home buyers (#005)

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Have you ever stopped to consider the necessary fees for buying a home? Do you have questions about home inspections and appraisals? Have you given any thought to legal costs and taxes? If you aren’t sure about the obligatory fees associated with buying a home, then you could be putting yourself in a risky situation.

The costs associated with buying your first home are more than just having the down payment ready. Those who do their homework go into the closing process prepared to meet their financial obligations. Does this describe how you’ll be ready to buy your first home?

If you’re interested in learning more about the fees associated with buying real estate then you’ll want to invest 20 minutes to this edition of The Mortgage NewsCast brought to you by Dreyer Group Mortgages.

In this episode, host Erik Reynolds interviews Jared Dreyer, accredited mortgage professional and president of Dreyer Group Mortgages, a proud member of the Verico Brokers Network about the fees associated with buying your first home, including the down payment required, the legal cost and taxes, and other budgetary items that are a part of the closing process.

White Rock, BC offers plenty of choice real estate, but the options are ever growing. The Globe and Mail reports that the town’s community plan envisions a build out to contain a population of 30,000 by the year 2030, with a 70/30 split between multi-family and single-family units. This interview is a chance to financially prepare to buy your first home in this new era of residential development. http://www.theglobeandmail.com/life/home-and-garden/real-estate/sleepy-white-rock-bc-catches-the-developers-eye/article16387138/

The Two Types of Fees for Buying a Home

This episode gets right to the point, kicking off with a discussion about direct and indirect fees for buying a home. Jared reviews the different aspects of the two types, and explains that while direct costs include things like legal fees and government taxes, indirect costs pertain to items fees such as utility hookups.

Then Jared talks about how much buyers need to purchase their first home in regards to the down payment. He also talks about the Canadian law requiring mortgage insurance for down payments that fall within certain parameters, and tells listeners which three insurance companies can help them comply.

If you try to buy a home without having saved enough for the associated fees, then you could risk delaying the closing process.

How Fees Affect Your Real Estate Purchase

Jared then talks about how different fees might affect a real estate purchase for a first-time homebuyer. Listeners will appreciate the information about what fees they are responsible for, and which ones they are exempt from paying. He also answers these questions:

  • Will I have to pay a property transfer tax?
  • What is the importance of a home inspection?
  • How is a home inspection different than an appraisal?
  • What legal costs go along with buying a home?

Now consider the fees for buying a home that Jared has outlined so far in the episode.Are you confident that you have enough saved in addition to the down payment? If not then it may be a good idea to reevaluate how you will accomplish this.

Explanations for Other Fees for Buying a Home

Next Jared discusses the survey certificate, including which professional provides the survey, and if there is a fee involved. The lending company could have other requirements to help protect both the client and the lender. Then Jared enlightens listeners about the property tax adjustment. He explains how a lawyer calculates the fee for the credit or debit that might apply to the vendor and buyer, and what affects that cost. He also clarifies why this differs from the property purchaser or transfer tax.

Fees for buying a home are a crucial step on the path to home ownership. While it can be fairly puzzling, industry leaders are there to help you cover all your bases. The episode wraps up with Jared explaining the importance of house insurance. He tells about how much it cost, and which types may be built-in to other fees.

Are You Ready to Close on Your New Home?

Could you use more facts about fees for buying a home? Do you want to know how much you need to have saved? Listen to the full podcast now and then ask your questions or share your thoughts in the area below. After you finish listening to this informative podcast, please contact Dreyer Group Mortgage Brokers at 1.800.687.9020 or apply with us using our 30 Second Application. http://www.dreyergroup.ca/30-second-mortgage-application/

We look forward to hearing from you!

Dreyer Group Mortgage Brokers
#308 – 15252 32nd Avenue
Surrey, BC V3S 0R7
Phone #: (604) 536-3802

Website: http://www.dreyergroup.ca/
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