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Making the decision to purchase a home can be a really good thing or a really bad thing. It is a serious purchase that needs to be well thought out. There is more to the purchase than just getting a loan. There are other expenses that the homebuyer needs to be aware of and prepared for.
Do your duty
You’ve found the home that is perfect for you. Unfortunately, it’s not as easy as just getting the loan and signing your name. You must do your due diligence to make sure the home is a good buy. Hiring a home inspector is a must! It is also an added expense that you need to be prepared to pay out of pocket.
It costs to close
Once it has been determined that the house is fit for purchase its time to close. That also means paying closing costs. Those are the expenses that are paid to all of the people that helped with the home buying process. In some cases though, the closing costs can be added to the mortgage loan instead of having to be paid out of pocket.
Buying a house doesn’t mean that you get to escape those monthly utility bills. Water, electricity, and gas will without a doubt be moving in with you. Your utilities might even be a little higher than you’re used to paying if your house is significantly larger than your previous apartment.
Be ready to be taxed
As a new homeowner, you are also required to pay property taxes. Fortunately, they are usually added to your mortgage. Be mindful that the tax rate can rise each year. When that happens, your taxes owed will increase which will also cause your mortgage to increase. You also have the option to pay your taxes out of pocket and not have it added to your mortgage.
Be Bob the Builder
Home repairs are the expenses that might have you regretting your decision to purchase a home. Unlike the other expenses mentioned before, home repairs are usually unexpected. Save an emergency fund that you can pull from when these repairs pop up. It’ll help prevent you from being tempted to burn the whole house down.