If you’re buying a home, you already know that it costs money.
But what are the costs of owning a home that go beyond the mortgage? If you’re a first-time buyer, here’s what you need to know.
Beyond the Down Payment
For most home purchases, buyers need to come up with the standard 20 percent down payment (unless you’re using a VA loan, which doesn’t require a down payment at all, or some types of FHA loans).
Other than your monthly mortgage payment, which begins shortly after you move in, you’ll have to think about furniture, décor, and in some cases, appliances. The
These things really add up… and unfortunately, there’s more to come.
Real Estate Taxes
Your home’s value is the biggest factor in the amount of taxes you’ll have to pay. In many cases, mortgage lenders final real estate taxes into monthly mortgage payments—and that can be a big bonus for you because your taxes will be paid on time, and it’s one less thing to worry about.
You’ll most likely have to purchase homeowners insurance, which protects you against issues such as fire, theft, and other disasters. However, as with other types of insurance, you’ll most likely be required to pay a deductible if something happens; that means it’s a good idea to set aside a stash of cash for an emergency.
Homeowners Association Dues
Some neighborhoods and subdivisions charge homeowners a monthly or annual fee to care for the sidewalks, landscaping, and other amenities. Nearly all condominium complexes charge HOA dues, as well.
If possible, you may want to purchase a home warranty that will cover defects and issues. If not, remember the everything in your home has a life expectancy—including appliances, fencing, and other components.
Most experts suggest that you budget between 1 and 2 percent of your home’s purchase price to put toward annual upkeep.
Are You Buying a Home in Port Aransas?
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll start searching right away.
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