Are you a first-time home buyer? The process can seem daunting. With all the fees associated with the closing process, it’s easy to forget or not even know that on a $300,000 house closing fees can range from $6,000- $10,000. Other costs to consider in those additional costs are recording costs, lender fees, home inspection, legal fees, survey fees, real estate taxes, home owner’s insurance, settlement fees, and possibly more depending on your situation. Keep in mind that while you can take out a mortgage to break up the cost of the physical house, the closing costs are a one-time fee that you pay upfront.
In addition to closing costs, there are other expenses to take into consideration. If you’ve always lived in an apartment, something as simple as receiving utility bills for water and heat can catch you off guard because your landlord used to hide them in the cost of rent. For the average American family, utilities can cost upwards of $3,900 a year. That’s not including cable and internet, which you’ll want too.
If you are looking to buy a home in a development, you should prepare to pay homeowners association (HOA) fees, which can range from $200- $300 or more a month. It is important to think about what you are willing to pay these organizations because in more expensive neighborhoods these payments can rival your monthly mortgage. However, HOA fees aren’t the annoyances they may seem because they cover maintenance costs for complex improvements and landscaping, which you probably don’t want to do yourself in the sweltering summer heat.
Need help tracking these costs and making sure they stay within your budget? Call the experts at Riley and Gutman at 732-431-0300 for answers to your home buying questions.