First time homebuyers are extra careful in planning their budget. They consider a lot of things such as monthly house payments against their rent or lease payments. There is also the consideration of down payment. However, many of them tend to leave out some other crucial factors which often have a significant impact on their budget, and the price of house they can truly afford.
Increased Costs of Utilities
Being your first time to buy a house, you probably want to move into a place bigger than your current apartment or rental home. Although it feels wonderful to get that extra space, it also requires more power to keep everything running smoothly and keep your home comfortable. Heating, air conditioning, and the cost of using more appliances can add up to your utility bills that might leave you surprised. Make sure you ask the home builder about the common cost of cooling, electric, and heating according to your lifestyle, including the usual prices for summer and winter months alike. If your utilities will cost 30 percent more compared to when you were renting, you can add this to your monthly expenses before you decide on the price of house your budget can afford.
Future Repairs and Maintenance
Whether you are looking at an older house which requires a few renovations, a house and land package, or a new display model, your future home will require regular maintenance and periodic repairs after some time. When you are renting, most of the repairs or maintenance are shouldered by the landlord. However, once you have your own place, you will be on the hook for the replacement and repairs of damaged or worn appliances. Months may pass with no repairs required but once they pile up, these could get quite costly. The same thing goes for maintenance like washing windows or painting walls. You can go DIY or hire experts to it for you. No matter what path you choose, you will still need to invest in materials and tools at the very least.
Different Mortgage Fees
Mortgage calculator will be able to give you a good idea of your monthly payments for mortgage but you still need to include other fees which your lender might charge to make up for the loan you go from them. These fees obviously add up too quickly. The good news is that these are only one-time expenses although these can still increase your initial payment or closing costs by a few thousand dollars.
In case your chosen builder provides townhouse developments, house and land packages in planned communities, or golf communities, you might need to pay a property management fee every month. These are the fees covering the price of care and management of common area and other amenities in the community. These fees can differ so make sure you raise this concern.
Buying your home for the first time might make you feel intimated with all the potential fees and costs associated with home ownership so make sure you conduct some research first and set aside a complete budget before you make a commitment.