Unexpected Costs Faced by First-Time Home Buyers

While the housing market is continuing to boom, more and more people are deciding to take the plunge into home ownership. However, many first-time buyers are faced with additional expenses that they have not budgeted for. Rather than the obvious down payment on your home, consider these hidden costs that will likely affect your budget before signing on the dotted line. Even more importantly, however, is securing the right Glen Rock Homeowners Insurance to protect your new investment.

Home Inspection

Once you submit an offer on a home, you need to have it inspected by a certified professional to ensure nothing is falling apart and it’s in good condition. However, this out of pocket expense can cost you anywhere between $200 and $600 dollars depending on your location. According to Kiplinger, if you uncover hidden structural, mechanical or other issues, you can negotiate the repair terms with the seller before you finalize the deal- otherwise, you will be solely responsible for any problems and the cost of fixing them.

Appraisal Fee

Before the bank will loan you the money for your home, they have to make sure it’s worth every penny-which is where the appraiser comes in. The bank will send out their preferred appraiser and it will cost you about $250-600.

Closing Costs

In addition to the cash saved for the down payment, you’ll also need another 2-5% of the home’s sale price to cover closing costs which takes care of loan origination fees, prepaid homeowners’ association charges, lawyer fees, and more.

Repair and Maintenance Costs

Now that you’re a homeowner, you are solely on the hook for all damages, repairs, and maintenance it may need. This could range from new locks to new windows or a complete HVAC replacement, depending on its condition. These fees add up quickly- so be sure you’re ready for the responsibility.

At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (855) 977-1842.