Now is the time to visit territory mostly unfamiliar to first-time home buyers: the costs that go along with buying a home.
What are the Expenses You Can Expect?
- Down payment
- Closing costs
- Additional fees/expenses
- Monthly mortgage payment
Before You Buy
Prior to purchasing a home, you will need cash for earnest money and a down payment. It's quite possible that you may have been told that a 20% down payment is required to purchase a home, but that isn't entirely true. Loan programs exist that allow borrowing as high as 96.5% - or possibly 100% financing for individuals who qualify.
You will also need to pay closing costs when the home's ownership is transferred to you. Closing costs would be a one-time payment due at the time you close the loan.
Closing costs will vary slightly for everybody, but listed below are a few examples what may be included:
Other Expenses to Save For
Don't forget — your house will require routine maintenance and upkeep, especially in the winter. You will also be faced with bills for electricity, water, internet, and additional utilities to pay out. There are also moving costs to contend with, be it hiring professionals or serving pizza and sodas to your friends, you will still be needing to set aside some money for that as well!