Home buying comes with its own twists and turns. Through deciding which areas you’d like to live in, researching the nearby schools, getting pre-approved, learning how much of a mortgage you can afford, and everything else that goes into the home buying process, it’s easy to overlook some things.
To help you navigate the home ownership process, here are 4 costs to keep in mind:
- Private mortgage insurance. To save you some extra money, you want to aim at putting 20% of the price of the home down. If you can’t afford the 20% down payment, you’ll be required to take a private mortgage insurance policy. You’re lender or mortgage officer can help you decide which option is the best and answer your questions.
- Closing costs. In many cases people forget about the closing costs which include processing, underwriting, recording, survey, and title insurance fees—adding up to thousand of dollars. When you apply for a home loan, make sure these costs are included in the amount borrowed.
- Property taxes. Set by the local government, these taxes are used for public expenses such as community resources (parks, schools, and sidewalks). The seller or seller’s agent can provide you with a list of annual costs of these taxes.
- Utilities. Another cost that gets overlooked when buying a home are the utilities. To gain a better idea of what your monthly utilities will be, ask the seller for a year’s worth of utility bills. This will give you a sense of what you can expect to pay. Remember, to also keep in mind the family size. A family of four will be paying more in utilities than a family of two or a single person.
Your real estate agent can help you move through the home buying process. Have questions? Give us a call today and let us assist you into finding your dream home.