Home Buying Expenses to Anticipate
When buying a home, especially if it is your first time, it is important to understand all of the costs
associated with homeownership. Here is a list of costs to be prepared for:
First, your down payment. If it is less than 20% of the purchase price, you more than likely will also have
to pay for private mortgage insurance. Next, the cost of a home inspection. This is for your own
protection and your lender will likely require you to get one. Moving expenses will vary depending on
how far and how much you are moving. Property taxes and homeowner’s insurance will be due
annually. Routine maintenance costs will also be your responsibility as the homeowner. You may want
to look into a home warranty… which is insurance that covers repairs and replacement due to normal
wear and tear. And… don’t forget utility bills. Monthly charges for gas, water, electricity, telephone,
cable tv, and internet.
By considering all of these expenses and budgeting for them, you are less likely to be caught off guard.