Buying your first home is a very exciting rite of passage moment for many adults. As our nation continues to make moves that allow for more and more people to become homeowners, there are some costs associated with the big step that may take you by surprise.
Beyond just the typical moving costs, supplies, and down payment, there are some other ways you will find yourself spending your money along the journey. Don’t get caught off guard. Instead, be aware of these costs before sitting down at the closing table.
Appraisals and Inspections are Worthy Expenses
In order to qualify for a mortgage, houses must be appraised and inspected and guess what—they’re not free! Appraisals and inspections are often used as bargaining tools, but buyers typically wind up paying for the appraisal.
The good news is that appraisals are meant to protect you from overpaying so you can view it as money well spent. Inspections also fall into this category as they can save you from having to spend thousands more later remedying issues not disclosed at the time of sale.
Home Insurance Can Get Pricey
Another expense lenders typically require in order to issue a mortgage is homeowners insurance. Depending on your insurance provider, these costs can be paid monthly over the course of a year, however, sometimes new home buyers will be required to pay for a full year up front.
A lot of factors will determine how much you will pay for homeowners insurance, such as your new home’s appraisal and the value of your possessions.
Some other expenses that you may encounter when purchasing a new home that may surprise those doing so for the first time include:
- Escrow fees
- HOA (Homeowners Association) fees
- Lawncare equipment or services
- Utility connection fees
- Garbage and waste pickup fees
As you can see, there are a lot of potential costs associated with purchasing a new home beyond just the monthly mortgage and realtor expenses. Make sure to ask about each of these potential costs when meeting with your realtor, attorneys, and even potential new neighbors living around the house you are purchasing.
To get the best bang for your moving buck, Capitol Relocation & Logistics is here to make sure your money is well spent. Call us at (860) 415-4400 or use our online contact form to request more info today.