Buying a home can be an exciting, though stressful, adventure. While planning all the preliminary steps, such as how to boost your credit score and whether you want hardwood floors or carpet, it’s also important to consider some of the additional items your new budget is going to need to include. Some expenses may be a given, such as a down payment for your dream home. Others, such as home insurance, require a little more shopping around and attention to detail. Let’s take a look.
There are several different types of inspections that can be done on your potential new home. For example, a sewer inspection can let you know if there are any tree roots impacting your sewer system, and a pest inspection can alert you to things like termites that can cause major issues for you down the road. Certain inspections, like a general inspection that covers all the basics of the house, might be required by your lender before they will approve your loan
This is one of the fees of buying a house that can play out in a variety of ways. Your real estate agent, if you use one, will ask for a commission. This is his/her share of the profit for helping you find the perfect house. Often this is included in the closing paperwork. In addition, there are times when you will be responsible for paying this and other times where the seller may cover this expense. Read through documents regarding this before signing anything.
The idea of home insurance includes a few different things. First, you need insurance for your home, just as you do for your car and what you may have had for your rental home or apartment. This helps protect you and your belongings in case something were to happen. Your agent will help you identify these circumstances, and may also be able to help you with escrowing your fees into your mortgage. This means that you pay them at the same time, to the same lender, and the lender is in charge of saving and paying them to the insurance company. A single payment for you to include major aspects of owning a house.
As you can see, there are many aspects of buying a home that can add various expenses to your budget. While it may be easy to get caught up in the moment, make sure you are also taking the time to ensure each step is fully included in your budget to prevent issues arising later on.