You found the perfect property. You have your down-payment, your loan, and your closing date. But do you have any idea of the financial check points you missed along the way? It’s easy to miss some of these expenses, especially when you’re excited about the prospect of moving into your new home. While these aren’t necessarily “hidden costs”, these expenses come as a surprise to many first time buyers.
Home Inspections Are Unexpected Expenses
Of all the corners to cut, many new home owners think this is one of them. That, first time buyer, is a serious offense! Essentially, a home inspection is a user-guide to owning that particular home. You get an idea of what’s wrong with the house, and you learn how to maintain it as it needs to be maintained. Not every house is a one-size-fits-all kind of deal, which is just another reason why you need the home inspection.
Even though the home inspection can cost anywhere from $400 to well over $1,000, it’s very important to remember: it’s in your best interest.
Closing Costs Often Surprise First Time Buyers
You might want to grab a notepad because closing costs add up.
Closing costs consist of everything. Be sure to consider attorney fees, lender fees, escrow fees, and every other combination of a real estate term and “Fee”. Interest and appraisal costs should also be considered in terms of closing costs.
This cost can be surprising, even if you think you have an idea of what it might cover. You can set yourself up for success by saving an additional 2-5% of the purchase price to cover for closing costs.
Homeowner’s Insurance is a New Thing for Renters
If you’re used to renting a home or an apartment, this fee can be unexpected. Even though the Triangle doesn’t face as many environmental hazards as other states, it can be surprising to run across the numbers on your insurance bill. According to Insurance.com’s average annual rate for home insurance, North Carolina pays $773.
Property Taxes Too
Just like homeowner’s insurance, if you’ve come from rental land property taxes can throw you for a loop. Depending on where you’re located in the Triangle area, your property taxes could range from
Maintenance and Repairs
Imagine you’ve finally finished moving all of your things into your new home, and you find there’s mold. Or you find that there another necessary repair you somehow missed before closing. You’ve tied up your money in this new house, so you have nothing left over to pay for additional repairs and future maintenance.
Account for the leaky faucet, the broken disposal, and the cracked paint job. And account for them a second time by saving money to allot to ongoing repairs. According to one financial planner, it can be a very solid investment to save another 4% of the purchase price. This amount should be saved yearly for both ongoing and future repairs or maintenance.
What, you’ve finished packing up all your things, cleaning your new home, but… you don’t have a way to get your things there? Many people forget there’s a price tag on a moving truck. That price tag goes up if you’re moving far, too. Plan ahead so the process of moving into your new home doesn’t take a caravan.
Well, it might either way.
Real Estate Experts
If you’re ready to take the plunge into home ownership, we’re ready to help. Yes, it’s one of the most expensive decisions you’ll ever make. However, we’re advocates for the first time buyer and have years of experience helping new owners get into the home of their dreams.