When buying a home, it’s sometimes easy to forget about certain other costs that come with it. Here are five such costs that you need to remember to budget for.
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As a homebuyer, here are five costs that often get forgotten about that you need to remember to budget for:
1. The down payment. Most people don’t actually forget the down payment, but they forget about what kind of difference how much you put down makes. In our area, you can put down as little as 3% for any property up to $700,000. Above that price, you usually have to put down a minimum of 10%. To get the best interest rate from your lender, you’ll have to put down 20% or more.
2. Your financial reserves. You’ll need at least six months’ worth of mortgage payments and property tax payments saved up when you buy a home.
3. Moving expenses. Unless you’re doing it all yourself (which I don’t recommend), moving isn’t cheap. A good moving company usually costs between $2,500 and $4,000, and we can refer you to several movers who will take great care of you.
4. Furniture. Buying a new home is exciting, and once you move in, odds are you’ll want to fix it up exactly the way you want it. This usually means buying new furniture. Also, don’t forget about the essential items you might need to buy, like a new broom.
5. Home updates. If your new home has an old bathroom that you want to fix up, you’ll have to budget for that. How much this will cost you can vary, so we’d be happy to come to your home, give you an estimate, and recommend some excellent contractors.
If you have any more questions about these costs or you have any other real estate needs, feel free to give me a call or shoot me an email. I’d be happy to help you.