Final closing costs, the round-up

In all of our research on buying a house, readers, we heard about closing costs over and over again.  Mostly, it was in the form of warnings, because apparently this is a thing that a lot of first time buyers completely overlook.  For anyone who hasn’t had the pleasure of sifting through dozens of articles about buying a house, I’ll give you the summary.  Have 2-3% of the value of your home set aside for all the garbage that everyone tacks on at the end of the sale.  Everyone and their idiot has an “admin fee” for lifting their pinky fingers to help you buy a house, so be prepared.

Dan and I set aside $5,000 for closing costs, which we knew would include lawyer fees, a home inspection, and other miscellaneous expenses that we would need to do right away.  Here’s every nickel we spent of that money, broken down for you to see.

$315.27          Home inspection for the Beech house we didn’t end up buying (Dawn paid for                         the second inspection because she is awesome and felt bad for us)
$2,000.00     Deposit for our house, paid when we made our offer
$27.50            Bank draft fee for writing a down payment cheque for all our hard-earned                               pennies
$80.00           Postponement fee for the hot water heater rental agreement
$270.07         Duct cleaning
$40.00           Admin fee for our property tax account with the City
$485.43         Simon expenses, his time plus materials for knocking down a wall
$349.04         More Simon expenses, for fixing the crack in the foundation
$35.00           Admin fee for gas account
$55.00           Admin fee for water account
$30.00           Admin fee for hydro account
$39.95           Admin fee for hot water heater rental

$3,727.26

I think we did pretty good on estimating things, don’t you?  The Simon expenses didn’t necessarily have to come out of the closing costs budget, but these were things we really needed to get done before we moved in to the house.  You can look forward to a post in the near future about the work that Simon did for us.

I was also counting on having some lawyer fees in that pile, but when I contacted our lawyer’s office a month after we’d been living in the house to ask where the invoice was, they said it was already taken care of (?).  This makes me think it was somehow tacked on to our mortgage (more ???).  At our final signing with our lawyer (or rather, the nice young girl appointed by our lawyer to actual meet with us), I recall seeing a piece of paper with an outline of every fee we were going to pay, and it totally mentioned around $1,300 for their services.  I was fully expecting to pay it after the sale was finished, not have it rolled in with the interest we’re paying on the house for the next 22 years and 3 months.  I called the lawyer’s office again a few days ago to super duper confirm that we don’t owe them any money, and after some confusing discussions with the receptionist, I found out we already paid them, the fees were taken out of the down payment.  Hmm.  Whatever, it’s been paid and I will sum this up with a shrug of my shoulders, readers.    I think it’s a win-win for everyone.

There you have it, not so bad, right?

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About joeyandjanice

Two crazy kids trying to make sense of the jumble surrounding making the jump from renting to owning our first home. Join us here as we stumble towards the biggest purchase of our lives.
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