4 expenses to remember when budgeting for a house
Owning a home, especially if it’s your first home, can reap huge financial benefits. You start building equity as you pay your mortgage. However, any homeowner will tell you that maintaining your home is no small expense.
While it’s easy to account for your down payment, mortgage and closing costs, there are several things new homebuyers don’t always remember to consider. That’s why we want to prepare you for these four expenses that often shock homeowners.
Utilities likely aren’t a new payment if you’ve lived in an apartment. However, homes are often much larger than apartments, making utility bills almost twice as much. Additionally, as the pandemic has conditioned us to spend more time at home, utility bills have climbed.
Though location will determine the rate of this expense, you may have to pay more than two percent of your home value each year. Check out the median property tax of your state to get a better idea of how much you’ll have to pay.
Home wear and tear is bound to happen. Common repair costs to think about are painting, appliances, plumbing, electrical, water heater, roof and HVAC. Labor and supply chain disruptions are continuing to cause higher prices for parts and repairs, so expect to pay more.
This is another cost that varies based on location. It’s a necessary expense that will cover potential damages to your property. Homeowners insurance is often required and is crucial to protecting your most important investment.
Regardless of extra expenses, homeownership is an exciting journey for many. We just want you to be ready for your present and future. Now that you are prepared for the cost, partner with us to experience the security that owning a home can offer.