The costs of buying a house is heavy, and for those who think knowing mortgage rates, tax payments, and sticking within your budget will be sufficient will be in for a surprise. There are more expenses involved in the home buying process than just property costs, here are some things you should keep in mind when budgeting your expenses:

  • An appraisal to justify the fair market value.
  • Inspection costs.
  • Real Estate attorney to review contract.
  • Property taxes for example are another cost to look out for. The general mortgage rate is about 3.8%-4.2%.
  • Homeowners Association.
  • Moving costs: packing, storing, transporting.
  • Utilities: telephone, electricity, gas, and water.
  • Appliances or furniture.
  • Maintenance and Renovations: example is trees that fall on roofs, gutters need cleaning, driveways need repair, plumbing, and wiring. The rule of thumb is to budget at least 1% of your homes purchase price each year for home maintenance costs.
  • PMI and title insurance: if the down payment on your house is less than 20% of the purchase price, you will have to pay for Private Mortgage Insurance. PMI protects your lender in case of default. It’s standard and fees may vary. Title insurance offers protection for you and your lender if you discover someone else who could claim title of the house.

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