It is always exciting to think about moving into your dream home. While it may be less thrilling to think about the associated costs, it is a good idea to get a handle on those expenses as early as possible.
Here are a few household costs to consider before you buy a new home:
- Mortgage payments: This is a fixed cost that you should know up front. In addition to your monthly payment, you’ll be calculating your down payment and any lender fees.
- Property taxes: What you pay for property taxes will depend largely on the value and location of your new home. Each state and county may set its own property tax laws, so be sure get educated about your specific area.
- Homeowners’ insurance: Like property taxes, homeowners’ insurance may vary based on state and local guidelines. Consider bundling your homeowners’ insurance with other types of insurance, such as auto and life insurance to help you save money.
- Utilities: Running your new home comes with a list of potentially new expenses, particularly if you were renting before. Gas, electricity, water, sewer and trash removal are all separate bills that are likely to be sent monthly to your new mailbox.
- Routine maintenance: Even in a new home, things may break or wear out over time. You should have warranty on most items, but it’s important to keep some emergency money on hand “just in case.”
- Landscaping: How much you put aside will vary on your property and how much there is to maintain. You may also need to consider the changing seasons and routine care such as spring clean-up, leaf raking in the fall, or snow removal.
- Furnishings and décor: A beautiful new home often also means more space to fill with furniture. You’ll also want to plan for window treatments, decorative floor coverings, and other items that meet your taste and needs.
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