The Hidden Costs of Homeownership
Is one of your financial goals to someday own a home? You may have a house type and price range in mind when laying out your financial plan-of-attack. While purchasing a home is a major milestone, if you are not ready to face all the associated expenses of buying and owning one, you may find yourself under a level of financial strain you’d rather do without. Avoid homeowner headaches by including these three often-forgotten costs:
- Property taxes: When estimating how much you expect to pay monthly for your home mortgage, don’t forget about property taxes. The amount of property taxes that a person owes annually will depend on the county assessor’s price for the house, as well the property tax rate in the county where the home is located. It pays to do your research into what these tax rates are, so you can get a sense of if you are financially prepared to make monthly mortgage payments.
- Commission and Other Purchase-related Expenses: You may be required to pay for inspections or preparation of legal documents before you even complete your home purchase. Any real estate agent who assists you with your home purchase will likely get a significant commission. Due to the time and hurdles that go into buying a home, unforeseen expenses often appear left and right. Keep yourself financially comfortable by setting funds aside for these additional expenses before making an offer on a home.
- Maintaining Your Home: Don’t forget that once you become a homeowner, you will now have your own wide list of maintenance expenses to cover. Make a point of taking care of small repairs and leaks before they become major, much more costly emergencies! Give yourself enough room in your monthly budget to take care of your home, and stay on top of your home-insurance policy to prevent unpleasant, demanding repair expenses that risk disrupting your financial security and progress.
If you are not as financially stable as you would like to be, but would like to someday own a home, focus not only on saving regularly, but on paying down any debt. The less money you are losing to interest, and the stronger your credit score is, the sooner you will be able to afford a reasonable mortgage. Some people discover that an additional career helps them get a major leg up on their journey out of debt and into confident homeownership!
Learn more ways to regain control of your financial future at www.syncis.com/blog/.