You finally bought that house you’ve been dreaming of and just barely qualified for the mortgage. Congratulations! There are a lot of additional costs that come with being a homeowner though, and people don’t always think of this when they initially find homes for sale.
At Assist-2-Sell in Amarillo, we want your home-buying experience to be positive — which means selling you a home you can actually afford month to month. Read our blog today for seven costs you need to consider before buying a home, and then contact us today to see which new listing could be yours.
Down payments can range in cost from 5 percent to 20 percent of the cost of the home, though you could certainly pay more than that upfront if possible. The median home value in Amarillo is $129,700, so a 10 percent down payment would be $12,970 right out of the gate.
Monthly Mortgage Payment
Right after paying the down payment, you’ll need to immediately start making your monthly mortgage payment. And remember — the bigger your down payment, the lower your monthly mortgage and the less interest you’ll pay.
Woah, what? If you’re a first-time homebuyer, this one can come as a surprise. These taxes support parks, infrastructure, public schools, and other general services. The cost will depend on your home value, state, county, and even school district, and you generally have the option of paying it monthly, quarterly, or annually.
Before you get your keys and make the house your home, you’ll need to buy closing costs, which covers things like a title search, credit report, pest inspection, and home appraisal, and they can sometimes add up to 5 percent of your home’s purchase price.
It’s a good idea to have, and most mortgage lenders will require you to purchase it anyway. It will give you peace of mind when it comes to fire, storms, theft, flooding, and other potential damage though. In 2015, the countrywide average homeowners insurance premium was $1,173.
Yep — that bill isn’t going away. And though it probably isn’t gastronomically large, it can add up (especially if your former landlord agreed to pay part of the bill, such as water or gas). It’s a good idea to add it into your budget and see if you can afford buying a home.
Speaking of your former landlord, there’s no one you can call now for repairs — it’s on you. Plan on paying a certain amount each month for maintenance and repairs. It’s also wise to consider spending more on making the house your own! Different furniture, paint, or flooring can cost thousands.
Here at Assist-2-Sell in Amarillo, we’re eager to help you find your next home; we just want you to be prepared for the home-buying process and associated costs. Find houses for sale, browse real estate listings, and tour new homes for sale in the area when you work with Assist-2-Sell. Contact us today.