If you’ve done your research about the home buying process, you already know that you need to have some money put away for a down payment before you can hope to buy a home.
But there are other costs that can creep up that you may need to prepare for along the way. Knowing about these costs before you begin the process can help you avoid stress when the time to purchase a home comes. Here are the top four unexpected costs that you need to prepare for before you begin the process of buying a home.
The term actually refers to several expenses and fees that are put together and paid at the time of your closing. The amount typically comes to between two and five percent of the total price of your home. Some of the fees that are usually included in your closing costs include:
- Application fees from your lender
- Attorney fees
- Home inspection costs
- Property tax
Once you’ve purchased a home, there are a few types of insurance you’ll need to cover yourself in case of unforeseen circumstances. There’s homeowner’s insurance, which covers you in case of damage to the home and its contents. Some lenders will also require you to get mortgage insurance, which covers you in case you are unable to make mortgage payments due to certain issues. Many of these policies will require you to pay a deposit or at least the first month’s premium before you can move in. You can get free quotes from most insurance companies to help you get an idea of how much you’ll need to have available.
If your property taxes aren’t included in your closing costs, you’ll have to pay them separately to the local entity that collects them, like the tax collector or county office. It’s prudent to pre-pay the first year if you can, but you usually only need to pay the equivalent of 60 days worth when you move in. to get an idea of what this amount might be, you can look up the property tax rate in your county and use the amount you’re planning to spend on a home.
Move In Expenses
Reserving some money for move in expenses can save you a lot of difficulty and stress when the time comes. Being able to hire movers to help you get everything packed and moved over can be a lifesaver when you have a lot of stuff. You may need a storage unit for extra things that you don’t want cluttering up your place, or extra furnishings to make your new place feel like home.
If you’re ready to get started on the search for a new home, contact the Core Group today. Our team can help you find the right home for you in Orlando or the surrounding area.