Closing On Your Home Purchase
Posted by nick_niesen on October 29th, 2010
This is the final step. You've found the perfect house. You're happy with your mortgage arrangements. Now it's time to close the deal. Closing is a process where all legal and financial obligations, which were stated in your "Offer of Purchase", have all been made.
There are many things to keep in mind for the closing to go smoothly. Here are the steps:
? Give a copy of your purchase offer to your lawyer and have him or her go over the terms and conditions.
This is the day you take possession of our new home and you get your keys. But much more happens on Closing Day.
? Your lender provides the mortgage money to your lawyer.
Closing Day Defined
Adjustments and Closing Costs
In order to register a deed, you have to pay Registry Office fees and the Land Transfer Taxes.
Land Transfer Taxes
A land transfer tax is usually paid to the province at the time you or your lawyer register your transfer and deed. This tax is calculated as a percentage of the purchase price. If you are a first time home buyer of a new home, you are given a bit of a break.
Right of Inspection
Usually, the vendor is not required to allow you to inspect the premises prior to closing. However, sometimes this can be worked out between you and the vendor and it is recommended that you do inspect the premises if possible.
Decide on your mortgage lender with the same care you would bring in a business partner. When times get tough and you need a a lender to stick through tough times with you,you will quickly find out if they are someone you would want in a foxhole with you.
The last thing you want is a lender who is more concerned about percentages than in your historical payment performance.
Build a relationship with your lender and keep them informed as if you are put in to a position to change the structure of your mortgage. Having a lender as a business partner can be a significant advantage in tough times.Also See: Land Transfer, Transfer Taxes, Purchase Price, New Home, Lawyer, Closing, Purchase
Claim 1 FREE Stock! No Purchase Necessary!
You have a 100% chance of receiving one free stock! Click to claim and have a chance to get one share of Facebook, Visa, Microsoft and others for free!