Costs Associated With Home Buying

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First-time home buyers might not be aware of additional costs associated with the closing process, so here is a list of costs you should be prepared for:

 

• Your down payment. If your down payment is less than 20%, you will also more than likely have to pay for private mortgage insurance.
• Moving expenses. The cost will depend on how far you are moving and how much you have to move.
• A home inspection. Your lender will require you to order and pay for this. § Property taxes. You’ll have to pay them annually.
• Homeowner’s insurance and title insurance. § Maintenance costs. If you were a renter, your landlord paid for maintenance, but now the responsibility is yours.
• A home warranty. This is insurance you can get that covers repairs and replacement due to normal wear and tear.
• Utility bills. Monthly charges for gas, water, electricity, telephone, cable, and internet.

By considering these expenses and budgeting for them, you are less likely to be caught off guard.