Unexpected Costs for First-Time Homebuyers
Some first-time buyers are surprised by the full cost of homeownership.
To prepare your budget, consider these extra costs:
Closing costs typically total 2 – 5 percent of the purchase price and are in addition to down payments.
Homeowners insurance costs an average of around $1,000 a year, but prices vary. If in a flood or earthquake zone, you’ll need extra hazard insurance.
Property taxes could range from hundreds of dollars to thousands a year, and they often fluctuate.
All home maintenance becomes your responsibility, so save money for normal upkeep and emergency repairs.
You’ll also need to pay for all utilities. If moving from a smaller apartment, expect the larger home to have higher bills.
Nevertheless, the pride of homeownership is priceless.