Monday July 11, 2022
5 Home Costs to Include in Your Budget
When it comes to buying your dream home, it’s important to set a budget you can afford. There are specific costs to include in your budget when determining how much home you can buy. Below are five of the most common home costs to consider:
- Your Mortgage Payment
Your mortgage payment is the most obvious cost that comes into play when you’re plunging into home ownership. If you’re like most Americans, you’ll most likely need a mortgage to facilitate your purchase. There are two ways to pay for your home; you either buy in cash or acquire a loan from a mortgage lender, where you will make the payment each month.
- Closing Costs
You also need to include closing fees in your homeownership budget. These costs can vary significantly depending on your property’s location and other factors. Typical closing costs range between 1% and 3% of the property’s buying price but can be higher, especially for low-priced homes.
- HOA Charges
If you’re moving into a new neighborhood, you may need to include Homeowner Association dues in your budget. These HOA fees usually cover common area and amenity maintenance and other services. HOA’s charges vary based on your home’s location and the common services covered by the HOA.
- Property Taxes
Regardless of where your home is located, there is a good chance you will be paying property taxes each year. But if you have a mortgage, these taxes are paid monthly to your lender, who will then pay them on your behalf on the due date.
Homeownership comes with a monthly cost for certain utilities, such as sewer, water, and garbage collection expenses. Remember to include these costs in your budget when shopping for your home.
Work with One of Our Preferred Lenders Today!
Need help financing your new home? We’ve got you covered at Landmark 24 Homes. Get in touch with us today so we can connect you with the most reputable mortgage lenders.