Budgeting for buying a home can be difficult enough when you’re just weighing mortgage options and a purchase price.
But there are many other factors that go into the cost of home ownership. Some of them are one-time expenses that you’ll pay during the home buying process, while others will be recurring costs for as long as you own the home.
Closing Costs
There are several smaller fees that add up to a rather large sum when you’re going through the closing process—loan fees, attorney fees, underwriting fees, and more. They typically add up to 2–5% of the purchase price. For a $300,000 home—roughly the national median—that’s in the neighborhood of $10,000, so be sure to budget for it.
The buyer can generally get the seller to pay for closing costs, so keep that in mind when looking for your home, and be sure to make sure your agent includes those in your offer!
Appraisal
Your lender will require an appraisal, and the appraisal fee (a few hundred dollars) comes out of your pocket.
Inspection
The few hundred dollars you’ll pay for a home inspection is money well spent, but it’s something you have to keep in mind during the purchase process. You’ll have the peace of mind of knowing the house is free from any major issues, and you’re making a smart, solid investment.
In the long run, a few hundred dollars is much cheaper than foundation issues, or illegal electrical, which you can find when renovating your home.
Insurance
Although homeowners insurance isn’t legally required, it’ll almost certainly be required by your lender. Further insurance, such as flood insurance, may also be required (depending on your location).
Home Owners Association
If you’re living in a property or community with shared spaces, you’ll almost certainly have an HOA fee. This pays for things like trash removal, maintenance of common areas, and for recreational facilities like gyms and swimming pools.
The HOA fees are marked in each listing, and if they’re not, have your agent ask prior to viewing the home. If it’s a feasible amount that you can afford then move ahead! If the fee’s are too much on top of what your mortgage would be, move on to the next home.
With a Yancey Realty agent on your side, you will be prepared for all these costs to home ownership, and you can be confident that your best interest is in mind!
Give us a call at 704.467.8877 today to get the house hunting process started!