Unexpected Costs when Buying a Home
Unexpected Costs when Buying a Home to look forward to
In order to purchase a home, buyers must come up with a down payment. In addition to the down payment, there are additional costs to consider when closing on a home. Be prepared and save for these unexpected expenses.
There will be closing costs that are associated with your loan. Depending on your loan amount, you may have to pay 2%-3% in application fees, attorney fees, appraisal fees, homeowners' insurance, and other assorted costs.
The $375 to $500 cost of a home inspection should also be factored in. The seller won't be able to negotiate on repairs without a professional inspection of the home.
Check with a landscaper to see what it will cost to bring the landscaping up to your standards if the house you are considering needs new landscaping. Ask for an estimate for monthly yard maintenance if you don’t plan to do it yourself. Budget for at least $100 per month.
Exterior and interior cosmetic updates will likely be on your to-do list. Determine whether you need to work on one renovation at a time or could manage a couple. Your finances may take a hit if you paint the entire exterior or interior of your home at once.
It is easy to spend money on small décor items for your new home. Buying new replacement appliances or repairing larger appliances is your responsibility and can increase your home ownership costs.
In order to make your new house into the home you want, you should always have enough cash on hand. Be very careful and stratigic with your money when buying a new home. Take your time and budget wisely.