So you’ve saved up your money, found the perfect place to live in and put in an offer for the property. You might think you’ve got the whole process under control, but even if you have done research to prepare yourself for buying a home, there are costs that may sneak up on you. Here are the things you may not anticipate having to pay for as you get ready to move in and get settled in your new home.
A Home Inspection
Many lenders will require you to get a home inspection before your mortgage on the property can be approved. But even if you are paying for the home yourself, it’s important to get at least a general inspection of the home. During this process, the inspector will check for any major issues with the structure and makeup of the home. You can also get specialized inspections, such as termite or plumbing Inspections to make sure these parts of the home work properly. Doing this may cost you several hundred dollars, but it will alert you to any long term problems, so it’s well worth it.
The closing costs that you pay should add up to no more than around 5 percent on the purchase of a home, but they can be less. These costs can include:
- Lender fees to cover costs the lender incurred while putting your loan together, including preparing paperwork and pulling your credit report
- Attorney fees for the portions of the paperwork that must be filled out by a lawyer
- Interest fees covering the prorated cost of the interest for that month so far
Taxes and Insurance
Before you move in and start paying taxes and insurance, find out how this will be handled with your lender. Many lenders will include taxes and insurance costs in the monthly payment you owe them, and they will then pay these costs on your behalf. Other lenders will leave these payments up to you, and you can then pay them quarterly directly to the tax collector and insurer.
Maintenance and Repair Issues
One of the toughest things for new first time homeowners is getting used to the fact that they have to be prepared anytime disaster strikes. This can mean waking up one morning to find a flood or caved in roof structure, and having to put out the money to cover these problems. The best way you can prepare for this is to make saving money a part of your regular budget.
If you’re getting ready to become a first time homeowner, the Core Group can help you navigate the process! Click here to find out more about how we can assist you.