There’s more than meets the eye when it comes to switching over from a renter to being a homeowner. Owning your home means much more than being approved for a home loan and paying off the monthly payments as the years go by.
Simply put, there are other costs that are involved in being a homeowner, and here are 3 hidden costs associated with home ownership:
#1: Closing Costs on your Loan
Closing can literally amount to thousands of dollars on your home loan when it is finally settled, and the amount is usually negotiated while differing from state to state. Sometimes the buyer may have to come up with the cash or the seller will absorb the costs.
#2: Home Maintenance & Repairs
Almost every homeowner is aware of the fact that costs exists, and vary in amounts, depending on whether you buy a home in prime condition or which needs a bit of repair. Don’t be surprised if you have to deal with repairs almost every other year. So, it’s a good idea to keep some money aside for repairs in order to keep your house well-maintained.
#3: Property Taxes
Counties, municipalities and school districts all depend on property taxes paid by homeowners. It is usually about 1.38 percent of the value of the home at an average in the United States. Therefore, it’s a good idea to know how much your home will cost in terms of property taxes and set aside money for that very reason.