The Unexpected Expenses First-Time Buyers Often Face

Posted on: 14 November 2016

Purchasing a home is often one of the most expensive endeavors that an individual can embark on, even if it is so rewarding. You may have budgeted for how much your mortgage will cost a month, but you will also need to budget for other unexpected expenses that can result from owning a home. Some of these will be one-time expenses necessary to make your home livable. Other expenses will be on-going and will need to be factored into the monthly cost of owning a home.

Home Renovation Costs

It is critical that you hire a home inspector who will be able to identify problems with the home for sale before you purchase it. This will allow you to determine whether you would like to purchase the home in the first place and will also allow you to determine what other additional costs will emerge as you make these repairs. The good news is that you can sometimes save money on a home inspection. Some mortgage lenders do not require a home inspection. In some states, the seller is required to disclose a previous home inspection report if a previous buyer had the home inspected, but chose not to purchase the home.

New Appliances

Among the most common things that you will need to purchase for your new home is new appliances. This is a common problem when the individual who originally owned your home took the appliances with him or her. While an appliance may not seem that expensive compared with purchasing a home, a couple appliances purchased together can make purchasing a home somewhat more expensive. The good news is that some appliances do not need to be purchased immediately. For example, if you do not have a washer and dryer yet, you can take regular trips to a coin laundry service until you are able to purchase a washer and dryer. Other amenities, such as cable television, can be put off until later. 

Homeowner's Insurance

Know how much your home insurance will cost. When purchasing an older home, you may believe that you are saving money off the listing price. However, you may need to pay more money in home insurance for an older home. Since homeowner's insurance is an ongoing expense, it should be added to the mortgage when determining how much your home will cost per month. Fortunately, while homeowner's insurance is an ongoing expense, most of the fees will be one-time expenses that you will not need to worry about in the future.