There is a lot that goes into the process of buying a home. Also, the expenses of owning a home go beyond what many expect. Today, I wanted to go over five expenses that first-time homebuyers often forget about.
1. Closing costs. Oftentimes, people tend to forget that closing on a home costs more than just the down payment. The costs for your appraisal, insurance, and more can add up to an additional $5,000 to $7,000 on top of your down payment.
2. Home maintenance. Once you’ve purchased a property, you’re going to need to maintain it. Talk to people in your life who already own property about the costs associated with this kind of upkeep. This will give you a better idea of what to expect. You want to keep your home in good condition so that it maintains its value.
3. Property taxes. A value assessed by your city or town combined with a determined rate will equate to your tax bill. Most of the time, this is going to be paid quarterly. Sometimes your taxes are rolled into your mortgage, and sometimes they are not. Paying your taxes is a serious obligation, so make sure you understand and pay them.
4. Utilities. Things like gas, electric, cable, and more are going to add up. They are not cheap. The cost to run a home is going to be more expensive than the cost to run a small apartment.
5. Do you have an additional HOA fee or condo fee? This fee will be a monthly expense that you want to consider if they are applicable to you.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.