Buying your first home is a monumental moment. Years of saving and sacrifice have put you in the financial position to finally make that big purchase. However, the expenses that come with buying a home don’t stop with that initial down payment.
There are many hidden costs most buyers are not aware of before they step foot into that first open house. Let’s take a look at some of those costs as we try to help increase your understanding of the true financial readiness of buying a home.
Taxes
The monthly mortgage price for a home is often the amount most homeowners use to evaluate whether they can afford a house or not. As a potential homeowner, you cannot forget that you are responsible for property taxes owed on the property.
If you are not using an escrow account, you will be paying property taxes twice a year, and this hefty sum can be a huge hit to your personal finances if you are not prepared.
Fees
Once you close on your house, you will soon realize that there is a fee for almost everything involved in the real estate process. Appraisal fees, title fees, credit report fees, origination fees, etc. are just a few of the fees you will get hit with. There will also be closing costs you will need to cover.
Most of the time, the amounts are not huge, but they certainly do add up so make sure you work these fees into your budget. Make sure you choose a reputable real estate broker in your area to work with as they can help you navigate the finances involved and get you the best deal.
Moving Costs
Getting your entire life transferred from your previous living arrangement to your new home is not cheap. Packing materials, professional movers, and truck rentals are just a few of the possible costs you can be stuck with during your move. If you’re planning a move out of state, your costs will be even higher.
You may also have to take time off work depending on what you need to be done and those are potential loss wages that could cost you down the road as well. Don’t forget the costs of new furniture or fixtures that might need to be replaced in your new space.
Being able to buy a home is an exciting time for everyone involved. The pride that comes with owning your own property and having a space to call your own makes it all worth it. Be sure not to let these hidden costs put unnecessary stress on you and your family during one of the best times of your lives. Sit down with a First Team agent to get your budget and buying strategy nailed down.
This guest post is written by Eileen O’Shanassy, a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.
