Buying a house is a huge step. In fact, it’s often used as a metric to determine not only your success in life but also your level of financial responsibility. Many people dream about owning a home for years before it becomes a reality. Then, when they’ve finally found the perfect home, they get so excited to sign on the dotted line that they forget to look at the total cost of owning a home. Did you know that your total expenses as a first-time homebuyer will be greater than the price of a home or mortgage? Many buyers don’t! Here are the top 5 unexpected expenses as a first-time homebuyer:
1. Home Maintenance
As a homeowner, you are responsible for paying all maintenance costs.
A house is much bigger than an apartment, and that means higher utility bills!
3. Homeowners Insurance
This is a requirement for anyone with a mortgage.
4. Down Payment
Don’t forget about this important expense! Down payments paid through FHA loans can be as little as 3.5%, but most traditional mortgages range from 5 to 20%.
5. Closing Costs
This is the most frequently forgotten homeowner expense! Closing costs typically range from 3 to 4% of your home’s value and can include mortgage origination fees, appraisal fees, real estate agent fees, and more.
We know- this can all seem a bit overwhelming. But, we have great news! At CalendarBudget, we have developed an app to help you to not only track these expenses, but also plan for them. Our online budget planner is available both on our website and as an app for Apple and Android. This personal finance app can help you develop healthy spending habits, cut down on impulse buys and strategically save towards big financial goals – like buying a house.
To learn more about our budget planner and free 30-day trial contact us today!