Deposit
Your deposit is an advance payment toward your down payment and is generally provided when the Agreement of Purchase and Sale is signed.
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HOMEBUYER RESOURCES
Once you and the seller have agreed on a price, there are still a few important steps, costs and documents to take care of before the purchase of your home is complete.
Understanding what to expect at closing can help you prepare for the additional expenses and information your mortgage professional will need to finalize your financing.
BEFORE CLOSING
When you and the seller agree on the price of the home, you will typically provide a deposit when signing the Agreement of Purchase and Sale. The deposit forms part of your down payment.
You should also plan for other costs connected with purchasing and owning the property, including property taxes, a home inspection, an appraisal and appropriate insurance protection.
PREPARE FOR CLOSING
The purchase price and down payment are only part of the cost of buying a home. Several other expenses may arise before or at closing.
Your deposit is an advance payment toward your down payment and is generally provided when the Agreement of Purchase and Sale is signed.
Property tax is charged on privately owned property and is based on local tax rates and the assessed value of the property.
A home inspection examines the structure and mechanical systems of the property and can identify repairs or safety concerns before purchase.
If financing is required, the lender may request an appraisal to determine the fair market value of the property.
Talk with your mortgage professional about insurance options that can help protect your mortgage in the event of death, accident or illness.
CLOSING COSTS
Closing costs vary by property, lender and jurisdiction, but these are some of the common expenses homebuyers should be prepared for.
The cost of assessing the value of a home. The appraised value may differ from the purchase price.
Money put toward the purchase of the home to demonstrate the buyer’s commitment to completing the transaction.
The portion of the home’s purchase price you contribute rather than finance through the mortgage.
The fee paid to a home inspector to examine the property before the purchase is completed.
A tax payable when ownership of a property changes hands. Eligibility for rebates varies by jurisdiction.
Fees paid to a lawyer to complete the legal transfer of the property from the seller to the purchaser.
Mortgage default insurance may be required depending on the size of your down payment and mortgage.
Title insurance can provide protection against title-related risks, including certain forms of title fraud.
FINALIZING YOUR MORTGAGE
Your mortgage professional will need documentation to verify your identity, finances, property purchase and insurance before your mortgage can be finalized.