Here are five hidden costs to homeownership that you should budget for.
Today I wanted to talk about some hidden costs of homeownership that you really should know about:
1. Closing costs. These are all of the transactional costs that go into buying a home past the actual mortgage payment. Transfer tax, property tax escrows, lender fees, appraisal fees, and title insurance are a few of the costs you’ll run into.
2. Furniture. You’ll have to furnish the new house, so make sure you have money set aside for that.
3. Ongoing maintenance. You’ve had an inspection, so you should have a good idea of what you may need to fix, but there will always be things that come up. You need to have an emergency fund for these unexpected repairs.
4. Tax and insurance. We already covered some of these in the closing costs, but be aware that there will be ongoing fees around both your taxes and insurance.
5. Property utilities. If you can, get a good estimate of the monthly utility bills from the previous owner. This includes things like the sewer bill, the electric bill, and the water bill.
If you have any questions about these costs, feel free to call me at 215-680-4652. I’d love to hear from you.