It feels good to have found a perfect home that meets your specifications but being a first time home buyer, you might realize the price is way far from what you have envisaged.
If you will be shopping for your first home, it’s advisable you prepare additional and unexpected
home buying costs so you won’t be caught unaware.
Expect the Unexpected
Every homeowner will not dispute the fact that there is still more to spend after the down payment. Planning closing costs and homeowners insurance like appraisal and lender fees are quite easy because they are added into the home buying process but cost beyond those mentioned above are variable.
Your move in cost can be greatly influenced by the previous homeowners because for any large appliance (like a refrigerator) they take out; you will be the one to buy another one.
You might not see this as something big compared to buying a home, remember appliance quickly add up most especially if you have spent quite a lot on down payment. Unless there is an agreement before purchasing the new home, you are most likely to be the one that will incur the cost of the immediate home improvement.
Unfortunately, those costs are the least you might be incurring.
Don’t forget you will be hiring a home inspector to help you check the condition of the house (like the electrical wirings, wood rot, weak foundations etc.) and other hidden problems that you may not notice. Sure you know this won’t be coming for free.
The problems identified by the home inspector are rarely covered by the home insurance which means you re left to decide whether or not to buy the home after discovering any serious problem.
The creature comfort should also be considered
Your comfort is another cost. There are quite a number of things you are used to and you can’t imagine living in a home without them. For instance, if you are used to having cables and your new home does not have cables, you will need to hire a cable man and watch him punch holes in your walls.
And if you are just moving from the renting world to the homeownership world, expect to face higher utility bills your former landlord has been facing.
Plan ahead
Planning ahead is the only way to survive the home buying phase. How do you do that?
Budget before house hunting and through your search Search for homes that falls within the range of what you have budgeted and made inquiry in the cost of improvements. ( There is nothing as frustrating as purchasing a home thinking you can fix the yard for a few hundred of dollars but to finally realize it will cost thousands. Honestly, the benefits of preparing for the move cannot be overemphasized because it saves cost, time, and make you aware of miscellaneous expenses that may show up. Let’s take for example you find a nice home that cost lower because of its age, buying the home may save cost but be prepared to spend quite a lot on insurance which at the long run makes the house expensive.
Just like the boy scouts will say “Be prepared” and clearly define how much you will be willing to spend on down payment and improvements. Preparation and having a budget will not allow you to end up being house poor.
The bottom line; the process is simple, know your budget, plan ahead and in the twinkle of an eye, you are a homeowner.
