While purchasing a home is an exhilarating time, the cost of owning a new home can sometimes take new homeowners by surprise. However, if you are aware and prepared for the various fees and costs that you will be responsible for, you can take the steps to budget properly and avoid any unexpected and unwelcome surprises. With the major cost of construction and/or down payment behind you, many people tend to think that it is smooth sailing from there on out. While you will not encounter this same kind of substantial cost all at once, there are still regular payments that must be made as well as several initial costs for which you should plan accordingly.
After a down payment, it's now time to create a budget for the bills that will, like clockwork, come every month. Mortgage and loan payments are typically the most regular, consistent, and non-negotiable. Therefore, you should plan on taking these out of your paycheck automatically. Also, should you belong to an HOA, you will need to find out the typical fees involved and the schedule on which they are collected. Additionally, utilities, including electricity, water, gas, and things such as cable, internet, and phone service contribute to the cost of owning a new home. Beyond these, taxes are another inevitable cost. Depending on your city and state, the times per year that property tax is collected varies. However, it is typically once or twice a year. Knowing your approximate costs ahead of time will prevent unexpected surprises when this more infrequent, but nonetheless important, bill arrives.
While, if the inspection was done thoroughly and the house was constructed or maintained properly, you should have limited repair costs, it is still absolutely essential to setup a fund for unexpected problems that may arise. You never want to find yourself with a broken water pipe and no allocated funds with which to fix it! Working a small emergency fund into the cost of owning a new home each is all it takes to keep your house running properly and you living worry-free. Another important preventative cost that is absolutely essential is homeowners insurance.
While there are, of course, several fairly minor after move-in costs, such as decorating and painting, you will also most likely have to budget for landscaping. Particularly in a brand new home, you might be supplied with very little in terms of outdoor aesthetic appeal. While it does not need to cost much, it should still be taken into consideration when budgeting for the cost of owning a new home.
Source by Jayson Gibson
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