Is your family preparing for first-time home ownership? It is an exciting time to buy a home where you can create memories together! The excitement of finally becoming a homeowner can infuse hope and fun into every member of your family!
Hidden Costs of Owning a Home
It is easy to get caught up in the excitement and forget about some of the associated costs that you will need to be ready to pay for. If you are thinking about buying a home for the first time, here are some of the expenses that you can expect:
- Property Taxes: You will need to pay more than just your monthly mortgage payment on the property. Property taxes are an annual expense, so you’ll need to make sure that you have the cash available when tax time rolls around. For many people, property taxes are paid in incremental payments as part of their recurring mortgage payment and disbursed from escrow when the tax bill comes due.
- Insurance: There are several types of insurance coverage that you might need to pay for your property. If you don’t have 20% down, then you might need to pay the cost of mortgage insurance, which can be removed when you refinance in the future. Other insurance costs include homeowner’s insurance and hazard insurance for protection if a natural disaster damages your home.
- Maintenance and Repairs: Whether your home needs a new roof or you need to install new flooring, these costs can add up over time. Evaluate the current condition of the home so that you can calculate immediate maintenance costs that will be required before you move in. Also, set aside money each month that can be used in case an appliance breaks or you need to pay a repairman to fix an unexpected problem.
- Yard Care: Even if you are planning to do the landscaping on your own, there will still be related yard care costs. You will need to buy a lawn mower, pay for new trees or flowers, and repair broken sprinkler heads as needed. Some homes are located in a neighborhood with HOA fees, which may cover the expense of the yard care.
- Cleaning Services: It takes a lot of work to keep up with cleaning the bathrooms, kitchen, and all other areas of your home. You can choose to pay a cleaning service to help. If you want to handle the cleaning on your own, you will need to pay for the cleaning equipment and supplies that will be used, such as a vacuum, toilet scrubber, and cleaning solutions.
- Utility Costs: The bigger the home, the bigger your utility bill. You will need to pay both gas and electricity utility costs. Other expenses might include water and sewage, internet, home phone expenses, and more.
- Pest Control: Infestations are most common when the weather is changing outside. If you are dealing with spiders, ants, or rodents, you might need to pay a professional pest control service for help.
By planning ahead, you can be prepared for the costs that will be incurred after you buy your home. If you are interested in more tips for first-time home buyers, we encourage you to contact us at DUFFY Realty: (678) 318-1700