Buying a home is an exciting time in anyone’s life. The idea of a new chapter in a new home that you and your family will love is nothing short of exhilarating. But buying a home is also fraught with difficult decisions and choices, and the choices you make will affect you for years to come. One of the biggest factors of your home buying decision will be cost, and you may be surprised to learn that cost isn’t as straightforward as the price tag. Here are three home costs you need to factor into your purchase decision.
Repairs and Maintenancestrong>
Repairing and maintaining a home is… well… expensive. And it is only more expensive for older homes. If you think you’re going to be saving a big chunk of money by purchasing a home that is a few decades older, you may want to think carefully about the potential updates and fixes this house will need. Repairs and maintenance can really add up, so make sure that when you are considering buying a home, you also have the money in the repairs fund that will be necessary to keep your house in tip top shape. Owning a house means owning its problems.
Taxes and Insurancestrong>
After you buy your house, you are signing up not just for a mortgage, but also homeowners’ insurance and a yearly tax bill on your property that can really put a damper on your wallet. Some new homeowners think they can get around this by forgoing homeowners’ insurance, but that is a terrible idea. Homeowners insurance covers your valuables in the event of theft or an accident. Most families keep almost all their most valuable possessions in their home, so why wouldn’t you try to protect them as much as possible?
Closing Costsstrong>
You are going to owe some extra fees when you finally close on your home purchase, no matter what home you decide to buy. This is going to include things like a title fee, title policies, recording and settlement fees, title insurance. So just be prepared to have a few extra thousand dollars on standby in addition to the down payment on your home so that you are ready if these fees add up. They will be worth it as they ensure the smooth transition of homeownership in the legal system.
Buying a home is a great step for you and your family. But buying a home also comes with a lot of hidden costs that need to be factored into your purchase price. Make sure to consider these three costs when purchasing a home so that you make the best choice possible.
Read this next: Factors That Can Throw a Wrench into Your Moving Plans