6 Costs to Consider when Buying a New Home
The time may be right for you to scout for a new home to buy. With reasonable real estate prices and mortgage rates at a record low, you may be eager to assess your financial capability to become a homeowner. Homeownership is a big lifetime investment and you need to be prepared for the true cost it takes to own any of those homes for sale College Station beckons you to buy.
Include these costs into your budget when you have decided to become a homeowner.
1. Inspection and Appraisal Fees – The first expense to create a dent in your wallet is the payment for home inspection. Potential buyers shoulder the costs of appraisal and inspections for pests. These are considered necessary to make sure you don’t buy a damaged property or pay more than the real value.
2. Property Taxes – These are real estate taxes charged by the local government for public expenses. They are generally part of the monthly escrow you pay that adds up to your monthly housing costs.
3. Homeowner’s Insurance – Your mortgage lender will require you to purchase home insurance to cover a number of factors including repair, rebuilding, or replacement costs incurred in the event of a natural disaster or theft. The costs can be staggering if the property is situated in calamity-prone zone because you’re paying to rebuild your home or replace lost valuables.
4. Repairs and maintenance – If you are buying a pre-owned home, it can have some defects that were missed during the assessment. You need to get those attended to prevent them from getting worse. You can hire a contractor to inspect and clean major house components. As homeowner, you’re basically in charge of the overall home maintenance that entails both time and money.
There are other costs that you must include in your budget before the big move to your new home such as:
5. Moving Costs – Hiring a moving company or renting a truck can cost you. Do a bit of research about these services in the neighborhood and compare prices. Your alternative is to ask friends or relatives with trucks if they are willing to help you move your belongings. You can offer to pay for the gas; that would still be cheaper than renting a truck.
6. Decorating Costs – You may need to buy at least some new furniture and decorative items after finding out that what you own don’t measure, especially if you are moving from a small home. If you can stand the existing ones even if they don’t match your taste, consider waiting for a year or two before buying new sets to keep your expenses low at this time.
Buying a home is a rewarding life event. However, it may cost you a little more than what you have in the pocket. It’s a worthwhile investment accompanied by a string of unexpected and unplanned expenses that can double, if you don’t realize them earlier when planning your budget. Make sure you have extra funds to cover these costs and enough savings for an emergency so you can finally enjoy living in your own dream house.