Hidden Homeowner Costs

By
Real Estate Agent with Keller Williams Realty

Budgeting for buying a home can be difficult enough when you're just weighing mortgage options and a purchase price. But there are many other factors that go into the cost of home ownership. Some of them are one-time expenses that you'll pay during the home buying process, while others will be recurring costs for as long as you own the home.

Closing costs

There are several smaller fees that add up to a rather large sum when you're going through the closing process-loan fees, attorney fees, underwriting fees, and more. They typically add up to 2-5% of the purchase price. For a $300,000 home-roughly the national median-that's in the neighborhood of $10,000, so be sure to budget for it.

Appraisal

Your lender will require an appraisal, and the appraisal fee (a few hundred dollars) comes out of your pocket. Inspection

The few hundred dollars you'll pay for a home inspection is money well spent, but it's something you have to keep in mind during the purchase process. You'll have the peace of mind of knowing the house is free from any major issues, and you're making a smart, solid investment.

Insurance

Although homeowners insurance isn't legally required, it'll almost certainly be required by your lender. Further insurance, such as flood insurance, may also be required (depending on your location).

Home Owners Association

If you're living in a property or community with shared spaces, you'll almost certainly have an HOA fee. This pays for things like trash removal, maintenance of common areas, and for recreational facilities like gyms and swimming pools.


Posted by

Fulton Gaylord-Associate Broker, ABR, SRES, e-Pro
Certified REO Specialist, Registered HUD Agent
Keller Williams Realty
3510 Remson Ct., Ste 301 Charlottesville, VA. 22901
Fulton@kw.com
434-220-2228

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Rainmaker
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Fulton Gaylord Those are important list of homeowners cost to remember.

Oct 25, 2017 04:43 PM #1
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Rainmaker
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Fulton Gaylord

1st-Time Home Buyer Realtor - Charlottesville, VA
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