You’re ready to stop throwing your money at a landlord. You want to make the rules about what happens to your home, from painting the walls to inserting custom bookshelves. In order to make that happen, you have to go through the process of buying a new home. As a first-time home buyer, you may not know all of the expenses involved in this process. This quick guide will get you up to speed so that you can start preparing financially.
The amount of money you pay for your new home upfront is determined by the type of loan you secure, your credit and other potential factors. If you know you want to purchase a home, now is the time to start saving.
There are services which offer zero closing costs, and that can mean big savings for a first-time home buyer. This may help you designate more of your savings to the down payment in order to secure a more reasonable monthly mortgage payment.
Tax rates are determined by the neighborhood or city in which you choose to live. This is an expense that will stay with you as long as you own your home, so you may find that you can’t afford to live in an area that otherwise attracts you.
When you consider your monthly payment for a mortgage loan, remember that insurance will add to that expense. You can shop around to get the best rate, but read the terms of each policy closely to determine what you get for the lower rates.
Maintenance and Repairs
Some homes will cost more than others to maintain over time. If you purchase a used home, you may come across repairs that you didn’t anticipate before buying the home. You may also want to upgrade windows or appliances to energy-efficient models.
If you purchase a new home, you will still need to maintain the heating and air conditioning system, fireplace and other features of your home. You may also have the initial expense of purchasing appliances, or you may want to invest in landscaping.