Common Expenses for First Time Home Buyers

Are you dreaming about becoming a homeowner? Buying your first home is an exciting time but it can come with a few surprises. Our team of real estate agents in Eldon, MO specializes in helping first time buyers. That's why we work hard to prepare first time home buyers in Mid-MO for the expected and maybe unexpected costs that come with buying a home. Take a look below to learn about some of the common expenses that goes hand in hand with buying your first home.


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.

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.

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.

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.

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.

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.

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.

Furniture

Many first time buyers have likely rented in the last and may not own furniture. Furnishing a home can be expensive, especially if you are buying new. Consider buying nice used furniture to help reduce the impact on your wallet as you move into this exciting phase of your life!

Now that you know a little more about the costs of buying your first home near Eldon, MO, you can better prepare as you start your home search. Whether you need a little more time to save up or you're ready to dive right in, our Eldon, MO real estate agents are here for you. We can help ease you through the process of buying a home. From your home search to making an offer to closing, Devine & Associates is here for you!


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1109 S Business Hwy 54., Eldon, MO 65026
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