What are the Costs to Buying a Home?

You’ve saved up for your down payment, calculated the mortgage you can afford, now it’s time to purchase your first home but what hidden costs can come with it you may not expect.

Appraisal- Your property’s true worth will be determined and you will be expected to pay for a home appraisal.  The appraisal not only assures that you aren’t overpaying but can also be used as a negotiating tool.

Home Inspection- The inspection will determine if there are any issues to your new home.  The professional(s) will look for any flaws in the foundation and roof as well as check for any costly repairs.

Additional Inspections- Additional inspections including land survey, termite, sewer, chimney, or other ancillary inspections may be required or recommended for your new home. 

Repairs to Home- If the inspection turns up with any issues that the seller will not cover, or if you purchase a home that isn’t in perfect condition, you may find yourself spending money on repairs and changes before you move it.

Home Warranty- Although a home warranty is temporary, it might be an expense you want to consider.  The home warranty can offset the costs of pricy repairs and ultimately save you thousands of dollars.

Closing Costs- Closing costs can run between 1-5% of the total purchase price of your home.  However, you may negotiate part of the closing costs to be covered by the seller.  You may also have to pay private mortgage insurance if your down payment is less than 20% in additional to property taxes, fees for title searches and other filing costs.

Moving Costs- Professional movers can be expensive depending on the time and distance of your move.  You may also have to consider renting a storage unit, if you are downsizing or moving into a temporary place until your new home is ready.

Additional Insurance or Expenses- Additional insurance might be necessary for your home especially if you live in a flood plan.  You may want to prepare for costly repairs too that may include your water heater, furnace, or A/C unit to stop working.