These home-buying costs should always be part of your budget.
If you’re planning on buying a home, it’s always smart to have a budget. However, your budget may be incomplete if you don’t know all of the costs a home purchase entails. Other costs need to be factored in besides the down payment, and we want you to be prepared. Here are four of the most commonly forgotten home-buying costs:
1. Inspection. A home inspection can vary in price based on the type and the size of the home. They can range from anywhere from $500 to $1,000. If problems are uncovered during a general inspection, that will be an additional cost.
2. Appraisal. If you’re buying with a mortgage, you’ll be required to order an appraisal. This can range anywhere from $400 to $600.
“Hiring a professional mover could cost you thousands of dollars.”
3. Moving. Obviously, if you’re moving all of your stuff yourself, it will be less expensive. Hiring a professional mover to pack, load, and unpack could cost you thousands of dollars. There are other, more immediate costs associated with moving, including changing the locks or making a quick repair before moving in.
4. Cash to close. This is the largest expense that you need to budget for. It’s a combination of your down payment, but it also includes other closing costs for attorneys, taxes, lender fees, and escrows. In many situations, you’re required to escrow one year’s worth of payments for property taxes and homeowners insurance.
Finally, you’ll want to set some funds aside for right after your move-in. You never know when something will break or wear down, so make those unexpected repairs part of your future budget plans.
If you have any questions about buying or selling a home, don’t hesitate to hear out via phone or email. I look forward to hearing from you soon.