When buying real estate, your first step should be to figure out how much of a monthly payment you can afford without breaking your bank. To efficiently figure this out you must sit down with a mortgage broker, be true to yourself, and find out how much of a mortgage you can prequalify for. Keeping emotional context away is the best idea when deciding your budget as buying an over budget property may make you suffer in rainy days.
Other than principal and interest payment there are certain other ongoing expenses and closing costs related to owning real estate. Make sure you include all related costs while developing budget for your next real estate purchase.
Other than the expenses that will incur to upgrade the property according to your needs, below mentioned are some of costs that may come along with your property purchase:
Home Inspection fee and cost for any work required.
1. Legal fees.
2. Legal disbursements.
3. Tax closing adjustment.
4. Utilities closing adjustment.
5. Property inspection (recommended but optional).
6. Deed and mortgage registration.
7. Real property report.
8. Land transfer or property purchase tax.
9. Mortgage interest adjustment and takeover fee (if applicable).
10. Utility and cable connection charges.
11. Home and property insurance coverage.
12. Mortgage Insurance.
1. Property taxes.
2. Secure insurance coverage.
3. Transfer utilities.