Anchor Realty Doug and Linda Moxam

FEES AND CLOSING COSTS

1)Legal fees- You will need a lawyer to complete the purchase of your home. Legal fees vary from lawyer to lawyer but on average it is safe to allow 1/2 of 1% of the purchase price for the lawyer and another $200- $300 for disbursements such as registering the deed etc.. The legal fees for a purchase of a $100,000 home would be about $500 for the lawyer and $200 for disbursements for a total of $700.

2)Deed Transfer tax- The municipality the home is located in will charge a fee to transfer the deed into your name. In most of the metro area this fee is 1 1/2% of the purchase price of the home. For example in a $100,000 purchase you would pay $1,500 deed transfer tax. This tax is paid on closing to your lawyer who then pays the municipality.

3) Mortgage application fees- There are sometimes fees for applying for a mortgage and an appraisal of the property you want to purchase. These fees vary but count on $200 for an appraisal and $100 for an application fee. This is paid to the bank at time of mortgage application.

 4) Moving costs- There will be some cost to move to your new home. If you are moving a long distance get a number of estimates before deciding on the moving company. Even a local move will cost you. Allow $500 for a move within the metro area. A longer move will require estimates.

5) Building Inspection Fee- It is a must to have the property you are buying inspected by a professional inspector. They will check out the home for structural soundness. The cost for this service is about $250 but varies from inspector to inspector.

6) Power and telephone hook ups- Allow for the cost to reconnect your telephone and power. Allow $75 each for these.

7)Tax adjustment- The owners of the home you are buying have paid yearly taxes t the municipality. You will be required on closing to reimburse them for the taxes they have prepaid for the year. For example if they had paid $2,000 for the whole year and you were closing June 30th you would be required to pay the owner half of the taxes prepaid or $1,000.

8)Oil adjustment-If the home you are buying has oil heating you will be required to pay the owner for a full tank of oil on closing. The owner will fill the tank the day before closing. The cost for this will be around $300 based on today's prices.

9) New Appliances, curtains etc..- You will need appliances for your new home as well as curtains and other necessary items. Allow enough for these items in your closing cost calculations.