First-time homebuyers are sometimes caught off guard by overlooked expenses, which can create an uncomfortable financial pinch. Be sure you consider these one-time and ongoing expenses.
1. Home inspection
For a few hundred dollars, an inspection can uncover potential trouble such as structural problems or asbestos.
2. Home maintenance
Experts recommend setting aside 1 to 3%* of the home’s purchase price for annual maintenance. For example, you may need to buy lawn care equipment or replace the roof, furnace, or water heater.
3. Taxes and insurance
Property taxes and homeowners insurance aren’t always included in mortgage payment calculators.
4. Extra cash at closing
Your lender should give you a detailed estimate of closing costs. But beyond those, you may have to pay additional expenses, such as a prorated portion of property taxes or homeowners association fees that the seller has already paid.
5. The move
Whether you hire professional movers for a few thousand dollars or rent a truck, buy boxes and recruit friends to help, moving costs money.
6. Settling in
You may have to pay utility connection fees when you move in, plus utility costs may be higher than you were used to as a renter. Other costs include lock replacements and decorating expenses.
* Source: HGTV.
The experienced mortgage specialists at Hanscom Federal Credit Union can help you understand the true costs of homeownership so you don’t encounter any unpleasant surprises. We’ll help you find the right mortgage for your circumstances and budget. Contact a mortgage professional at 800-656-4328, 781-698-2043, or visit www.hfcu.org/mortgage.