Hey there. So Commandment #4 Thou shalt not spend money set aside for closing.
You have set aside money for closing. Very, very important. We see this happen quite a bit. Believe it or not. So you’ve made an offer on a property and you’ve got your down payment money.
The one thing that people forget is your closing costs. Remember, you got to have a 1.5% of your purchase price for your closing costs. Personally. I don’t think that’s enough. I think you should do the math on 1.75%. That covers all your costs. It covers your legal fees. It covers your disbursements. It covers your land transfer tax. Now I know if you’re a first-time home buyer, you’re gonna get the $4,000 rebate. That’s fine, Okay. But make sure that you count all your closing costs. 1.75% of your purchase price. Plus your down payment, do not spend that money because guess what happens on the day of closing? The lawyer’s going to want that? You’re only going to get the mortgage proceeds. You need the rest of the money in order to facilitate the transaction. So commandment number four, don’t spend your down payment or your closing costs.