Buying a new home is an exciting time. It’s also one of the most expensive and important purchases you’ll ever make. If you’ve never bought a home before, it can be easy to become overwhelmed by everything you need to know. This is particularly true of the expenses involved. However, there are some hidden expenses of home ownership that few first time owners should consider while budgeting your house
Things To Budget For When Buying A House
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When buying a house, it’s easy to overlook the fact that there are many hidden fees involved with purchasing a house. Appraisal fees, home inspector fees, attorney fees, escrow fees, notary fees, and even a credit report fees are all commonplace when purchasing a home. If you budget these in, then you won’t be caught short later.
Taxes and insurance are other things that few first time homeowners plan for. In addition to basic property tax, you could also have a services tax or an association fee. Additionally, your county, not just your state, might be able to levy its own tax.
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Now that you’re a homeowner, you don’t have a landlord to fix things anymore. Electrical problems, climate control, and plumbing are all things that can go wrong with your home. Setting aside a certain amount of money from your family budget to an emergency repair fund will save you from having to scramble to pay for repairs later.
Having insurance for the home is a requirement anytime you ask a bank for a loan. Basic home homeowners insurance is a given. Depending on where you live, the bank could also require fire, flood, wind or earthquake insurance.
Few homes come furnished. Even those that do often have furniture in poor shape. This means you will have to set aside a certain amount of money for furniture. While it’s true you might already have a bedroom set and TV, chances are you don’t have even a fraction of what you need to furnish a whole house. This is particularly true if you are moving from a small apartment into your first home.
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Soft furnishings are other items that are easily forgotten about. Soft furnishings include such items as such as drapes, pillows and throw rugs. Even if you have some shades from your old home, chances are they won’t fit these windows. You might have to buy brand new shades from a place like the Shade Store. It’s very important during your planning of family budgeting to include extra money for soft furnishings, especially drapes. The last thing you want is for your neighbors to be able to see you at night.
One of the worst things you can do when purchasing a home is to forget about all the hidden expenses of homeownership. Knowing all the hidden expenses involved with homeownership can help you decide how much home you can really afford.