Hidden Costs Of Buying A New Home

Owning a new home is a huge investment. If you are house hunting, prepare yourself for the real cost of buying a house and the entire property. There are several things that would come as a surprise to you, not to mention the mortgage payments. Here are 6 factors that can burn a hole in your pocket if you do not prepare for them in advance:

Appraisal, Inspection, and Closing Costs

Before buying a house, you need to do a home inspection and appraisal, wherein you need to pay to professional inspector. These may include chemical radon or pest inspection. It is important to get an appraisal and inspection of the house so you know you are buying a quality property at the right amount. In addition, you need to prepare at least 4% of the mortgage balance for the closing cost.

Condo or Homeowners' Association (HOA) Costs

If the house you buy belongs to a condominium association or HOA, it is a requirement that you pay a quarterly or monthly cost. The costs can increase, or the association may ask for additional payment for roof repair or parking lot repavement.

Moving Costs

When it is time for transferring to your new house, you hire a moving company to help you with your relocation. You are likely to make deposits the begin the moving process.

Insurance

The lender will ask you for home insurance. You will see yourself paying more if you have renter’s insurance. Aside from that, there are supplemental insurance that is essential to include in your coverage such as flood or wind damage.

Repair Bills

When it comes to homeownership, you will deal with some unexpected repairs that you need to address if you want to avoid further damage. These include removing a tree stump, replacing the roof, clearing out mold buildup in the basement, and so on.

Maintenance

Home maintenance requires a lot of your time, money, and effort. While there are some maintenance works that you can do on your own, there are times when you need to hire a professional contractor. Examples of works that you best leave to the experts are the maintenance of your heating and cooling systems, chimney inspection, and lawn care.

Home buying will naturally take a big amount of money from your savings. But, it is an investment that is worthwhile. Arm yourself with enough savings for expected and unexpected costs. Don’t forget to protect yourself with home insurance.

At Wellcovered Insurance Group, our mission is to ensure that we protect are clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (386) 218-4951. You can also request for a free quote by CLICKING HERE.

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