Closing costs are often forgotten when budgeting for a new home. Learn what mortgage closing costs are and how they affect your budget. Sherwood Park mortgage brokers, Innovative Mortgage Solutions, will help you factor in these costs so you can afford the home of your dreams.

1. Legal Fees   
   A lawyer or notary will be necessary in the home buying process. Your lawyer will prepare the mortgage documents, have you sign the documents, and will transfer the property to your name.   ($800 - $1200)
2. Appraisal Fees
   An accredited appraiser will look at your home and determine if the price you have offered is what the home is worth. The appraiser will compare recent sales of similar properties to determine the estimated value of your home. He or she will provide a report to your lender that confirms the value. ($250 - $600)           
3. Property Tax Adjustment 
   You may have to pay some of your annual property taxes at the time of closing. This would be done when you sign at the lawyer’s office. Because every situation is different, it is best to confirm with your lawyer what you will owe.
4. Interest Adjustment                          
   If you have chosen monthly mortgage payments, and your payment comes out on the first day of the month, you may have an interest adjustment. If the purchase of the home closes on May 29, for example, you will have to pay for three days of interest on your mortgage (May 29-31). If the purchase closes earlier in the month, you may have a larger interest adjustment. It is best to find out from your lawyer what your interest adjustment will be.
5. Title Insurance      
   Title insurance is sometimes used instead of a survey, and may be requested by your mortgage broker, lender, or lawyer. Your mortgage broker, lender, or lawyer will discuss title insurance with you if it is applicable for your transaction. ($200 - $300)  
6. Fire Insurance
   Fire insurance ensures you have adequate coverage to pay off your mortgage in the case of fire. The lawyer will want proof that there is fire insurance in place when you go in to sign the papers at his or her office. Ask your mortgage broker for a referral to an insurance agent who will be able to assist you. ($300 - $1000)
7. High Ratio Insurance Premium
   When borrowers have less than 20% of the value of the property as a down payment, they must pay a mortgage insurance premium. The premium varies, so you should check the amount with your mortgage lender. Most people will add this premium onto their mortgage. You also have the option of paying this amount up front.
8. Home Inspection
   Many people choose to have home inspections, although most of the time it is optional. A home inspector will look through your home and provide you with his or her professional opinion on the construction of the home. The home inspector will advise of any maintenance required, and will let you know what kind of maintenance you can expect in the next few years. ($300 - $400)
9. Survey 
   Most financial institutions require surveys. Surveys confirm where the home is sitting on the lot and make the lender aware of anything unusual about the property. You may be able to get an acceptable copy of the survey from the previous owners, and save the survey fee.
10. Utility Connection Charges 
    Some utilities charge a move or connection fee. You will need to contact each utility provider to find out their charge.

Closing costs are often forgotten when budgeting for a new home. Learn what mortgage closing costs are and how they affect your budget. Sherwood Park mortgage brokers, Innovative Mortgage Solutions, will help you factor in these costs so you can afford the home of your dreams.

1. Legal Fees   
   A lawyer or notary will be necessary in the home buying process. Your lawyer will prepare the mortgage documents, have you sign the documents, and will transfer the property to your name.   ($800 - $1200)
2. Appraisal Fees
   An accredited appraiser will look at your home and determine if the price you have offered is what the home is worth. The appraiser will compare recent sales of similar properties to determine the estimated value of your home. He or she will provide a report to your lender that confirms the value. ($250 - $600)           
3. Property Tax Adjustment 
   You may have to pay some of your annual property taxes at the time of closing. This would be done when you sign at the lawyer’s office. Because every situation is different, it is best to confirm with your lawyer what you will owe.
4. Interest Adjustment                          
   If you have chosen monthly mortgage payments, and your payment comes out on the first day of the month, you may have an interest adjustment. If the purchase of the home closes on May 29, for example, you will have to pay for three days of interest on your mortgage (May 29-31). If the purchase closes earlier in the month, you may have a larger interest adjustment. It is best to find out from your lawyer what your interest adjustment will be.
5. Title Insurance      
   Title insurance is sometimes used instead of a survey, and may be requested by your mortgage broker, lender, or lawyer. Your mortgage broker, lender, or lawyer will discuss title insurance with you if it is applicable for your transaction. ($200 - $300)  
6. Fire Insurance
   Fire insurance ensures you have adequate coverage to pay off your mortgage in the case of fire. The lawyer will want proof that there is fire insurance in place when you go in to sign the papers at his or her office. Ask your mortgage broker for a referral to an insurance agent who will be able to assist you. ($300 - $1000)
7. High Ratio Insurance Premium
   When borrowers have less than 20% of the value of the property as a down payment, they must pay a mortgage insurance premium. The premium varies, so you should check the amount with your mortgage lender. Most people will add this premium onto their mortgage. You also have the option of paying this amount up front.
8. Home Inspection
   Many people choose to have home inspections, although most of the time it is optional. A home inspector will look through your home and provide you with his or her professional opinion on the construction of the home. The home inspector will advise of any maintenance required, and will let you know what kind of maintenance you can expect in the next few years. ($300 - $400)
9. Survey 
   Most financial institutions require surveys. Surveys confirm where the home is sitting on the lot and make the lender aware of anything unusual about the property. You may be able to get an acceptable copy of the survey from the previous owners, and save the survey fee.
10. Utility Connection Charges 
    Some utilities charge a move or connection fee. You will need to contact each utility provider to find out their charge.