First-time Homebuyers - the Hidden Costs of Buying a Home
63Buying your first home can be a very exciting time, but it can also be expensive. There is so much more than getting a mortgage and making those payments each month. If you are going from renting to owning a home, here are some of the extra expenses you are going to be responsible to pay for.
- In addition to the down payment, there is also the closing costs, which can add thousands of dollars, but they can also be negotiated. Sometimes the seller will pay for them and other times they are split between the buyer and seller. It varies between states.
- There is also property taxes that must be paid, which are generally the principal source of income for school districts, municipalities, and counties. In the United States, the average for property taxes is one point three eight of the value of the home, but it depends on the state and county where you are buying your home. In addition, if you are buying a condominium or live in a community that accesses the homeowner a special tax you will have that on top of the property taxes.
- Highlands Ranch
Search Highlands Ranch Multiple Listing Service for Highlands Ranch Homes and Condos for sale - Highlands Ranch Real Estate MLS Listings. - First-time Homebuyers Guide
You have been living in an apartment, paying a landlord each month, and having nothing to show for it so you are now ready to buy your first home. - Denver
Search Denver Real Estate for Denver Homes and Condos for sale - Denver Real Estate MLS Listings.
- When you take out a mortgage, you are also going to have homeowners insurance. You are may also need to take out special supplemental policies for tornados, hurricanes, floods, and earthquakes if you are buying a home in areas noted for these natural disasters. You may also want to take out a special policy if you have expensive jewelry, antiques, or expensive equipment like a computer.
- Once you move in or before you are going to want to decorate your first home the way you want and that is going to cost money so you need to make sure when you figure up the money that you need that you also have a decorating fund figured into the budget. If you lived in a small apartment and then move into a bigger house, you may need more furniture, curtains, and accessories. You may also want to paint the walls or even replace the carpet to a color that you like.
- You also need to figure in the budget for home repairs and maintenance, especially if you have purchased a fixer-upper. If you have purchased this type of house, you should figure in twenty percent more to your spending budget.
These are just some of the extra hidden expenses that first-time home buyers do not always think about when figuring out their spending budget.
