We are beginning to reach the age where home ownership is important, so before you go out and start searching for that McMansion lets highlight a few fees that you might be unaware of, some are one time fees and others might exist for the duration of the home. These costs could take a house you could initially afford to now being unreachable.
1. Closing Costs – These can range from 2-6% of the home’s purchase price, if the home is $200,000 closing costs could be upward of $10,000, that’s a major burden if it has not been accounted for.
One time fee
2. Moving fees – this one might come as a complete shock but the average cost of a full-service move is $12,000 which is a major amount of money that cannot be financed. Of course you can nickel and dime your way to lower costs but regardless this cost has to be accounted for.
One time fee
3. Home owners Association Fees – If you lived in a planned community these are fees that what help maintain the playgrounds, pool, and other items that the entire community benefits from. It is usually money that is well spent (depending on who you ask) and you can see where it goes.
Life of the home Fee
4. Home Improvements- The not so secret part of homeownership. The beauty of apartments are someone else has to worry about the maintenance not you but with owning a home everything falls into your lap. This cost could be very small ranging from a new $30 doorknob to a new $25,000 roof, this cost is just wildly unpredictable.
Life of the home Fee
Above are just a few costs associated with purchasing a home and must be accounted for before you take that leap of faith and get that mortgage. Overall I would consider homeownership a great benefit for long-term financial security, next week we discuss the steps to purchase your first home.
1. Closing Costs – These can range from 2-6% of the home’s purchase price, if the home is $200,000 closing costs could be upward of $10,000, that’s a major burden if it has not been accounted for.
One time fee
2. Moving fees – this one might come as a complete shock but the average cost of a full-service move is $12,000 which is a major amount of money that cannot be financed. Of course you can nickel and dime your way to lower costs but regardless this cost has to be accounted for.
One time fee
3. Home owners Association Fees – If you lived in a planned community these are fees that what help maintain the playgrounds, pool, and other items that the entire community benefits from. It is usually money that is well spent (depending on who you ask) and you can see where it goes.
Life of the home Fee
4. Home Improvements- The not so secret part of homeownership. The beauty of apartments are someone else has to worry about the maintenance not you but with owning a home everything falls into your lap. This cost could be very small ranging from a new $30 doorknob to a new $25,000 roof, this cost is just wildly unpredictable.
Life of the home Fee
Above are just a few costs associated with purchasing a home and must be accounted for before you take that leap of faith and get that mortgage. Overall I would consider homeownership a great benefit for long-term financial security, next week we discuss the steps to purchase your first home.