Buying a new home is often a wonderful, exciting time… but can quickly turn into a very stressful time if you haven’t researched all the costs that are associated with your purchase! As home buyers, (especially first-time homebuyers) we typically just look at the price, minus the down payment, and figure out what our monthly mortgage cost will be. But NOT SO FAST… here are other very important costs to consider:
- Taxes: Property taxes can vary greatly depending on which county you live in, what school district you live in and even what subdivision/development you choose to live in! Also keep in mind when buying a pre-existing home, that the previous owner’s taxes (from the previous year) may NOT be what you’ll pay! They may have some exemptions that you don’t qualify for, and home values could go up as well.
- HOA: Check to see if the property you want to buy has a Homeowner Association; and if so, is it mandatory or voluntary? Dues can range from a few bucks a month to 1,000.00+ a year! It really depends on where you live, and what the amenities are. If your desired subdivision has a common pool, trails, tennis courts, parks, clubhouse, etc.…you can bet that your homeowners dues will be high.
- Insurance: You’ll need homeowners insurance to cover your losses due to weather, theft, accidents and disasters. It’s NOT cheap, and you should always get adequate coverage for the conditions of where you live.
- Maintenance and Repairs: From the moment you move in you are bound to have many ongoing projects, general repairs and maintenance items. You’ve likely heard a fellow homeowner say, “It’s never ending…there is always something to do when you own a home!”
These are all “ongoing” expenses, but also keep in mind when you make the initial purchase of your home you will have some costs that may surprise you as well. Check out our blog “A Closing Cost Breakdown for the First-Time Homebuyer” for a thorough look at what to expect when buying a home. Be sure to ask your real estate professional about escrow accounts and how much closing costs will be. We at Castle Hills Real Estate would love to help you! Call us today 214-449-1022!