Buying your first home can already be a financial strain – you’ve probably saved for years to get a down payment together to buy your dream home. But your down payment and mortgage aren’t your only expenses – buying and moving into a new home can come with a ton of additional costs that can put a big strain on you if you aren’t prepared.
Being able to anticipate all of the expenses that come with purchasing a house and prepare for them can mean the difference between a smooth transition into your dream home and a stress-riddled disaster that can be hard to recover from.
Types of Unexpected Costs
Almost every purchase of a home comes with unexpected costs, including:
- Appraisal and lender fees
- Homeowner’s insurance
- Replacing appliances that the previous owners took with them
- Immediate home improvements
- Hiring a home inspector
- Adding or changing utilities
- Costs of moving (movers, truck rentals, and so on)
While many of these might seem like minor expenses compared to your down payment, they can add up quickly if you aren’t prepared for them. While there are some factors, such as the home’s previous owners, that are hard to prepare for, there are some that you can easily build into your home buying budget so that they don’t catch you by surprise.
How to Prepare for the Hidden Costs of Buying a House
While you save for the down payment on your first home, ensure that you have a good amount of extra cash on hand for unexpected expenses. While you’re shopping for homes, keep some estimates on hand for common repairs, insurance, an inspection, and other items on the list above.
Have a clearly defined budget in place before purchasing your home to ensure that you’re not completely broke at the end of the process. After all, there’s nothing worse than having a house, but nothing else. With research and planning, you can start your journey into homeownership with confidence.