5 Unexpected Costs to Be Aware of When Purchasing Your New Home

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5 Unexpected Costs to Be Aware of When Purchasing Your New Home

A dangerous thought to have when purchasing a new home is that all you have to pay for is the hefty price tag and everything is finished. Although this would be very nice, that is not all there is to it. There are several other fees and costs you may not think about at first when purchasing your new home that pop up as the buying process continues. Although it may not be the most exciting news, it is wise to keep these potentially overlooked fees in mind when budgeting for your new home.

Closing Costs

An exciting part of the homebuying process is when your offer gets accepted because that means the home is yours . . . almost. While it is true that you have surpassed a few milestones, you are not finished quite yet. There are still closing costs which, according to Zillow, can impact your budget negatively by increasing your spending 2% – 5% more. Typically, this is what you can expect to be paying for in your closing costs:

Lender Fees
Home Appraisal
Title or Attorney Fees
Escrow Fee

The last thing you need is for these fees to get in the way of your dream home. Make sure you budget this in so you don’t have to worry!

Home Inspections

Before moving into your home, it has to be inspected by a professional to ensure that it is safe and livable. This is the case whether you are buying, building, or renting a new place. Although a typical inspection looks at areas such as termites, leaks, and other hazardous risks, depending on the age of your house, you may have to take your inspection a step further by looking at other less common areas such as sewers, roofing, and more. In any case, having your home thoroughly examined will come with a price that cannot be overlooked. Especially since your lender won’t let you move without a proper inspection. Be sure to have enough money on the side just for the home inspection process so you don’t run into any issues.

Moving Day Expenses

When it’s moving day, you will have a lot on your plate. Getting all your items from point A to point B will be no easy feat. Instead, you have to focus on packing your items safely to ensure they arrive at the new home in one piece. Although bubblewrap and other storing items are not expensive, they can certainly add up if you have a lot of items. Not to mention the price of a moving truck can be costly, especially when moving to a home that is several miles away. Don’t overlook these expenses that are important to making sure you are actually settled into your new place.

Furnishing Your New Home

In some cases, people move from a smaller home to a bigger home which means it has a lot more space to fill. If you are in this situation, you’ll probably notice that buying new items to fill in all the empty space is not cheap. Some suggest buying new furniture throughout the process and saving the items until you move into the bigger space rather than going on a massive shopping spree. Losing money little bits at a time is better than losing a large chunk all at once.

Home Insurance

At some point in the buying process, you will need to consider purchasing home insurance to ensure everything stays protected. In many cases, you will have to show your lender proof of home insurance before taking out a loan. Be one step ahead but take your time when shopping around to make sure you find the perfect plan that will fit you, your lifestyle, and your budget.

Although this may be a lot to take in, the important thing to note is that it is all do-able. Especially now that you are aware of costs that are sometimes overlooked. Now you know exactly what to expect when purchasing your home. If you are ready to begin your search, let Cooke Realty Partners help you find what you are looking for. Give us a call today at (615) 574-7359 to get started.