Top 5 reasons to save some money before buying a home
Are you considering purchasing your first home in Nanaimo? If so, it is an exciting time for you. One of the key ingredients to a smooth home purchase is money. First time home buyers are often surprised by the total costs associated with buying a home. It is important to have saved up some funds before applying for a mortgage. In fact, a lack of up-front money is one of the most common reasons a mortgage application will be denied.
Saving money to purchase your first home in Nanaimo is important. The following are the top five extra costs that arise when purchasing a home:
1. Down Payment - When you buy a home, you’ll have to make a down payment of some kind. The size of down payment required varies depending upon the value of the home and the current mortgage rules. For a referral to a local lender or mortgage specialist please give me a call.
2. Closing Costs – Closing costs are the additional fees associated with buying a house, such as legal fees, property survey fees, home inspection etc.
3. Cash Reserves – Your lender will check your bank accounts prior to funding your mortgage. They are looking to make sure you have enough reserves to cover your first couple of mortgage payments as well as your closing costs.
4. Moving costs- Even if you round up all your friends to help up on moving day there will still be some costs associated with the move. Sometimes you move into a new home only to discover that the rooms need re-painting or you need to buy a few pieces of additional furniture. Also, there are utility hookup fees to consider as well as redirecting your mail etc.
5. Mathematical boo-boos – We all make them. Maybe we under budgeted for expenses or were overly optimistic about our earnings. Whatever the mistake, it can prove costly.
I have a FREE e-book available to first time home buyers in Nanaimo that will assist you in understanding all the steps to buying your first home.