Yet, those considering their first purchase often leave out the hidden costs, which add up over time. From making repairs yourself to lawn maintenance, the price keeps up and eats away at your budget.
As you move toward buying a house, be sure to factor in these expenses:
Home Inspection and Appraisal
So you know what you’re getting and the cost matches the market, it’s advised to have a home professionally inspected before you commit to purchasing it. As well, a lender frequently requires a professional real estate appraiser to establish the property’s actual value.
Closing Costs
Your lender or broker has a list of costs you’ll be expected to pay at closing: processing, underwriting, recording, survey, and title insurance fees. The amount often totals to two to three percent of the loan’s cost.
Property Taxes
Know what the taxes are for any area where you would like to buy a home. Then, for budgeting, add this amount onto your monthly mortgage payment. Be aware, and consider within your finances, that property taxes increase with time.
Insurance
It’s a good idea to have homeowner’s insurance, but be mindful of your premium. As a general rule, the amount is higher for older homes. Too, like property taxes, premiums increase with time.
As well, you may need to purchase hazard insurance to prepare for potential natural disasters, such as floods, earthquakes, tsunamis, and volcano eruptions.
Homeowner’s Association Fees
Living in a development or condominium complex frequently comes with additional costs. Sometimes, this amount is for any principal, interest, taxes, and insurance, and in others, it’s for services that benefit the entire community, such as having a front desk worker, removing waste, and grounds upkeep.
Maintenance
New homeowners are often shocked by how much maintenance and weekly upkeep are required. Before, your landlord handled it all, but now, the responsibility and costs are within your hands.
What should you expect to pay for?
- Lawn maintenance – Grass cutting, pest control, weeding, adding fertilizer, and planting new shrubs, trees, and grass. If you do it on your own, be ready to pay for a lawn mower, sprinklers, and tools.
- Home maintenance – Whether you or a professional do it, nearly all areas require repairs at some point: The roof, the steps, appliances, plumbing, doors and windows, the water heater, the chimney, walls, painting, floors and carpet, and the bathroom. Not addressing these issues may result in more damage and higher costs. For instance, a leak may develop when you don’t replace cracked or loose shingles, while your HVAC system becomes less efficient when you don’t change the filters.
- Furnace – While the system is said to last for at least 10 years, heating and air conditioning are expensive. You never know when the furnace will fail, so always have enough to repair or replace it.
- Safety – Especially if you own a large amount of land, safety is crucial. Yet the costs add up when you take alarm systems, motion-detection lights, and other security measures into account.
Take the first step toward homeownership with By Carrier. Look through our communities to find just the right property in Central Connecticut.
