Don’t forget to factor in “hidden” costs when buying a home!
You’re excited because you just found the perfect home. The house is charming and the price is right.
But if you’re a first-time home buyer, you might find out that the price is pretty far from perfect. Especially the unforseen bills that may come your way.
If you’re shopping for your first home, prepare for additional — and often unexpected — home-buying costs. They catch many home buyers unaware and can quickly leave you underwater on your new home.
Some of the things you may have to spend money on right away.
Almost every person who buys a home, the spending doesn’t stop with the down payment. Homeowners insurance and closing costs, like appraisal and lender fees, are typically easy to plan for because they’re lumped into the home-buying process, but most costs beyond those vary.
Lots of times, the previous owners of your home are the biggest factor affecting your move-in costs. If they take the refrigerator when they move out, you’ll have to buy one to replace it. The same goes for any large appliance, whether it is the dishwasher or the washer/dryer.
And while these may seem like a small purchase compared to buying a home, appliances quickly add up — especially if you just spent most of your cash on a down payment.
Always factor in the cost of a home inspection up front as well. They may be hundreds of dollars that you were not expecting to spend, but a home inspection is a “must have” when buying a home.
Consider the features you may have taken for granted while renting
While many rentals offer various services that are included in monthy rental payments, most have the same basics included like Water, Sewer and Garbage collection. Most likely you will now be responsable for them.
When moving in to your first home, remember that you will need funds for having these services activated at your new home. Even things like cable TV have “hookup” fees that you will have to pay for up front.
Don’t forget that if you move from a apartment/condo to a single family style home, there is most likely a lawn to take care of. You know what that mean? you guessed it….. a lawn mower and tools!
Plan ahead.
Hopefully this small list of things to think about when purchasing you decide to purchase a home will help you plan ahead and budget in an extra little bit of money so you won’t be caught by surprise!
If you would like a “guide to buying your home” PDF to be sent to you, feel free to contact me and I will email one right to your inbox!
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