Adding Up Home Buying Expenses.

Thinking of buying a new home?

Be sure to consider the expenses involved with buying a home on top of the purchase price of the home. In addition to the basics in home buying…mortgage rates, local taxes and what your estimated buying power is, you’ll want to keep in mind some of the other costs.

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Here are some costs to consider when budgeting to buy a home:

Moving Expenses:
– The cost of hiring a moving service to get you to your new home.
– If you’re a do-it-yourselfer, consider storage fees (for items you aren’t moving), moving truck rental, supplies and gas/mileage fees.

Service Fees:
– Buyer’s agent fee.
– Home appraisal for the home you’re looking to buy. This lets you know it’s worth the asking price.
– Home inspection. Be sure you do this step! You’ll want to be prepared for any needed updates or repairs.

PMI and Title Insurance:
– PMI (Private Mortgage Insurance) applies if you put down less than 20% of the home’s purchase price.
– Title Insurance helps you in the event you later find out someone else could lay claim to the title (meaning ownership) of the home.

Homeowners’ Insurance:
-What will your new place cost you in insurance? Get a good faith estimate from your insurance carrier.

Home Utilities/Fees:
-Electric, gas, water, sewer, home security system, HOA fees

Home Updates:
– Your inspection will lend an eye to what needs repaired (some of which won’t be handled before you buy your home), so you will want to allocate a budget for needed updates and repairs.
– Paint, replacing missing roof shingles, broken driveway concrete or wiring/plumbing concerns.While all of these things are integral parts of buying a home, it’s always good to think about them in your home buying budget. Unexpected expenses certainly crop up after purchasing a home. A rule of thumb is to budget at least 1% of your home’s purchase price annually for upgrades and maintenance of your home.If you’re in the market to buy a new home, contact me! I would love to get you started.

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