For first time buyers, their biggest expense is almost always the house itself. Unfortunately, there are always other expenses that can take you by surprise. As long as you know what to expect, you’ll be ready to take the leap and become first time homeowners. Here are a few of the most common expenses to prepare for.
5 Major Costs That Take First Time Homeowners by Surprise
Though you know what to expect with your home-buying budget, you need to be prepared for additional costs that come after you close on the property. Don’t let these five expenses catch you off-guard.
Unless the home you buy is completely move-in ready, you’re going to need to prepare for surprise repairs. Remember, everything in the house and on the property is your responsibility to maintain, repair, and replace. Budget for everything from roof repairs to replacing broken appliances and you’ll be fine.
When you rent, your landlord often covers some of the utilities for your home. As first time homeowners, you’re responsible for paying for all of them. Some of those utility costs like garbage, sewer, and recycling will stay the same but others like gas, electric, and water will change based on your use.
If you buy a home in a neighborhood with an HOA, you’re going to have to pay attention to your landscaping. Otherwise, you could end up facing expensive fines from the homeowners’ association. Ultimately, it’s up to you to either pay for a professional to maintain it or spend the time doing the work yourself.
4. Property Taxes
All first time homeowners pay property taxes on top of their mortgage. This is part of what maintains the infrastructure around your home and neighborhood. If you’re not prepared, those taxes can derail your budget and make your monthly payments too high for comfort. Make sure you know what to expect before you buy.
5. Moving Costs
Even if you’re planning on having to move everything on your own, you’ll still need to prepare for the expenses. There’s the truck rental, additional equipment, boxes, and insurance that you’ll have to pay upfront. If you hire movers, you’ll need to pay them to transport your stuff and compensate them for the time they spend doing it.
Prepare for These Expenses
Before you take the leap to becoming first time homeowners, make sure you’re ready for these expenses. If you are, apply for a loan online and get pre-approved before you start shopping.