You set aside a certain amount of money to purchase your home on closing day, but is that the end of your financial planning? Many home buyers don't consider the additional costs of buying a home. I've listed a few of the hidden costs you will have to consider at closing:

• Closing adjustments - the seller needs to reimbursed for any expenses they prepaid.
• Legal fees - you will need a lawyer to perform a title search to ensure you are buying the home from its legal owner (I recommend you also purchase title insurance for protection from fraud and forgery).
• Inspection Fee - a home inspection can identify structural or mechanical issues.
• Interest adjustment - any interest accrued between your closing and first mortgage payment needs to be paid.
• Property tax - needs to be paid 3 to 4 times per year.
• Land transfer tax - necessary when a property changes ownership, this is typically the largest closing cost.

Condo owners should also consider the cost of the estoppel certificate which describes the financial and legal status of the condominium corporation.