7 Expenses of Which First Time Home Buyers Should Be Aware

Many first-time home buyers are surprised by all of the costs required to purchase and maintain a house. Before making the decision to buy, it is important to know all of the costs associated with homeownership. If you are planning to buy a home hear Eldon, Missouri in the near future, prepare for the expenses ahead. Purchasing a home is a big decision and a major stepping stone in life. Your trusted real estate agent in Eldon, Missouri is here to help you through home buying process. Provided below, by Devine And Associates, are some of the expenses that first-time home buyers should know about.

1. Escrow

An escrow account is set up to pay for critical home expenses, such as homeowner insurance and property taxes to ensure these costs are being paid. A portion of the homeowner’s monthly mortgage payment will be put into the escrow account for these expenses. The escrow amount can fluctuate in accordance to a number of factors.

2. Home Inspection

Many times, a home inspection must be performed on a house before the mortgage lender will approve the loan. The inspection lets the current homeowner and the potential home buyer know about the current condition of the home. The buyer is typically in charge of paying the inspector to look over and report on the home in question.

3. Appraisal

An appraiser will look through the home and compare to similar homes in the area to give an amount that he or she thinks the home is worth. The mortgage company will look at the appraisal cost to ensure the house is worth what they are loaning to the buyer. The appraisal fee will usually be charged to the home buyer.

4. Closing Cost

When you make the purchase of a home, it is referred to as closing on the property. There are costs associated with this transaction, such as loan origination fees and charges from the title company. A set amount will be required of the buyer the day of closing, to complete the purchase of the home.

5. Home Maintenance

There are a number of unknown maintenance costs that come up periodically for many homeowners. From a refrigerator or furnace breaking to remodeling a kitchen, some costs can be predictable while others are unknown. The best way for first-time homeowners to combat costs associated with home maintenance is to keep money set aside in an account for such expenses.

6. Moving

Many times, expenses associated with moving are overlooked in the homebuying process. From renting a moving truck to feeding your help, the cost of moving day adds up quickly.

7. Utilities

Home utilities cover a number of costs that go hand-in-hand with homeownership. The water, sewer, and trash are typically costs that a first-time homeowner has never had to consider before. Remember to add in the cost of electricity when creating your budget, as well as internet, television, and/or phone expenses.

Whether you are looking to purchase soon or preparing for the future, we would be pleased to help you start your real estate search. The decision to buy a home is an important one that should not be taken lightly. Homeownership is a major accomplishment, of which you can be proud. If you are longing to make that next step and buy a home in Eldon, MO, our team is here to assist! Give Devine & Associates a call at 573-392-9900 to start on the road to homeownership.

Where Your Best Interests and Our Best Efforts Meet!

(573) 392-9900
203 E. 10th St., Eldon, MO 65026

(573) 207-8407
213 N. Main St., Laurie, MO 65037
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