Have you decided to begin to take steps to purchase your own home? Although the prospect of owning your home is very exciting, there are many hidden costs that first time buyers may not be aware of that they may not be prepared for. If you are interested in purchasing a home in Mount Pleasant, South Carolina, and want to know more about the various costs that are associated with owning a home, Lucey Mortgage Corporation can help. Read on to learn more about the hidden costs you never knew about when buying your first home.
Home Costs Associated With Finalizing the Purchase
There are several costs associated with finalizing the purchase of your home. In addition to paying for mortgage costs, you will have to budget enough money for a down payment, and you will be responsible for closing costs, which are the fees associated with closing on the home. Closing costs include paying for a home appraisal, a title search and title insurance, loan origination fees to cover the processing and underwriting of the loan, escrow and attorney fees. If you opt to have your future home inspected, you will be responsible for paying for the home inspection. You will also be required to pay property taxes, and you may have to pay HOA (homeowners association) fees.
Most lenders require you to purchase homeowners insurance, which covers any damages or losses your home may sustain, and offers liability coverage in the event of an accident on your property. If you purchase your home with a conventional loan, and make a down payment of less than 20%, you will be required to pay private mortgage insurance, (PMI), and if you purchase a home with a government backed loan, such as an FHA loan, you will be required to pay a mortgage insurance premium, (MIP). PMI and MIP are intended to protect the lender in case the borrower is unable to make payments and defaults on the loan.
Expenses to Account for After Moving In Your Home
After you are ready to move into your new home, you will want to budget for moving expenses if you need to hire movers. You will also probably end up spending money on furnishing your new home with items such as curtains, furniture, and painting, etc., which can be a costly expenditure. A major difference between renting and buying is that the homeowner will be responsible for repairs and maintenance of the property, which can be an unexpected cost. If possible, you will want to save enough for any unexpected costs, such as a leak, appliance or structural issues, etc. Moving to a new house will more than likely increase the square footage you are used to living in, therefore increasing your utility bills as well.
There are many unforeseen costs that can come with owning a home, and it is essential to be prepared when you finalize the deal. If you are purchasing a home in Mount Pleasant, South Carolina, Lucey Mortgage Corporation can help you navigate the process and help you understand the hidden costs of home ownership.