Costs that You Might Not Consider when Purchasing a Home

The costs of home ownership far surpass any other expenses that you’ll typically make on a daily basis. Here are some of the top expenses that you’d generally see during the typical home ownership process.

Closing Costs

The cost of a home goes far beyond the price tag that you first see. Other charges include credit checks, appraisal fees, and home inspections. Plus, don’t forget that there are other costs such as a loan origination fee, title insurance, and an underwriting fee as well. Expect to see it go up to 8% of the home’s purchase price. This is why it’s recommended that you have a stable amount of finances readily available to you.

Property Taxes

Every homeowner should have insurance. For new homebuyers, don’t expect it to be an option. Lenders typically require the homebuyer to purchase private mortgage insurance in the case that the homeowner defaults during their mortgage tenure. Property taxes are typically included within the monthly mortgage payments and are indicative of the home’s values.

Utilities

Gas, water, and heat are a necessity inside a home. Depending on the area that you live in, your utility bill will vary according to the needs of the homeowners themselves. Your utility bill isn’t the only thing costing you money, the fact that you’re going to have to call for repairs at some point will indeed take a good chunk of money away from you as well. Also, if you’re planning on being energy efficient, then consider the cost of renovating certain applications like windows or heaters.

Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm with offices in California, Nevada, and Arizona.