Purchasing a house is exciting for first-time buyers. You’ve worked hard to purchase a house of your own. However, for some first-time buyers, the excitement wears thin when you get hit with more expenses than you expected. Prepare for these costs to expect as a new homeowner.
1. Homeowners Insurance
Homeowners insurance is property insurance that covers damages and losses to a person’s home and the assets that are in the home. It is required to protect your investment and your lender. The costs for homeowners insurance depends on the provider, the policy, and your home’s value. Normally, you can save money if you bundle your home and auto insurance together.
2. Property Taxes
Property taxes are a large expense when owning a home. They are calculated every year by applying a certain tax rate to the assessed value of the property. Usually, they are collected with your monthly mortgage payment, which makes them more manageable than paying the taxes all at once.
3. Higher Utility Bills to Expect as a New Homeowner
Utility costs for a house can be more expensive than for an apartment, because of more square footage and more bathrooms. Also, if you are planning on getting things like cable, internet, or phone services, you should be prepared for those monthly costs with setup and installation fees.
4. Appliances and Furniture
If you don’t already own furniture, set aside a budget to outfit your new home. Most houses come with the appliances already installed, but since you now own your living space, you may want to upgrade your appliances to energy and water-efficient models.
5. Home Maintenance Necessities to Expect as a New Homeowner
As a homeowner, you are now responsible for the upkeep of your home. If you previously rented, your landlord likely maintained the property for you. Mowing the lawn, cleaning out the gutters, and making any necessary repairs require time and money. Unless you are willing to pay someone to perform these tasks for you, be prepared to buy things like tools, a ladder, and a lawnmower.
These are just a few of the common expenses to expect as a new homeowner. Every home is different and may require different things. When it comes to buying a new home, don’t get in over your head. Unfortunately, many first-time buyers make the mistake of buying a home they cannot afford. Expect as a new homeowner to pay the additional costs outlined above once you move into your new home.