Considering Start-Up Costs

Did you know that when you buy a property, you need to have money put aside to cover start-up cost

s? A down payment and mortgage payments are not the only costs involved so it’s wise to plan some savings to take care of these other “first” expenses.

These costs should not be taken lightly and some mortgage lenders will even check that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your home and, therefore, cannot be used to meet these additional amounts.

Here is a list of common start-up costs:

  • Property inspection and evaluation
  • File processing fee for mortgage insurer as well as any taxes on the premium
  • Notary fees
  • Adjustment costs determined by the notary (electricity, heating, municipal and school taxes, equipment rental contract, oil, etc.)
  • Property transfer tax (welcome tax)
  • Moving expenses
  • Service and utilities hook-up fees (phone, electricity, etc.)
  • Decoration (paint, curtains, etc.) and renovations
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    This entry was posted on Monday, October 1st, 2007 at 8:13 pm and is filed under Home Buying, Real Estate Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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