Buying a home is a great time in anyone’s life. It takes a lot of hard work and saving to afford any home. However, saving to buy your dream home is not where money matters end. There are several additional expenses that you need to take into account so you can enjoy your home to its full potential.
- Utilities
A house payment calculator can be used when you’re purchasing your home to figure out how much your mortgage payment will be each month, but to really know how much it costs to keep your home functioning, you will need to add all of your other monthly expenses. If you were previously renting, some utility services might have been included in your rent, but as a homeowner, those expenses fall on you. Standard utilities are your electricity, water, and natural gas, to name a few. You can also add on other items like cable and internet to get a full picture of your monthly housing costs as a new homeowner.
- Property Taxes
Another expense of homeownership is paying property taxes on your home. Every area has its own timeline for property tax payments, so you might pay it all once a year or receive two bills a year. Ask your mortgage company if there is an option to include your property tax payment along with your mortgage payment each month. This will help you pay the full amount over 12 months instead of all at once, and oftentimes the mortgage company will make the payment on your behalf with the money you’ve already given them.
- Furniture and Appliances
Depending on the size of your previous house, you might need to purchase some more furniture to fill your new home. The same may be true for some appliances. It’s not uncommon to need to buy a refrigerator, washer/dryer set, and other appliances if they aren’t included with your home. For furniture, you may have an extra bedroom or bathroom you didn’t have before, and that will need to be furnished. The expense might not be an immediate one, but it’s something to start saving toward if you see a need for new items.
- Home Maintenance
There will be some other maintenance items that fall on you to finance to keep your home in tip-top shape. You may choose to do home maintenance yourself, but you’ll incur the cost of supplies. Your other option is to pay professionals to help maintain your home as needed. Essential home maintenance typically includes any pest control recommended in your area, landscaping around the exterior of your home, and tune-ups on your heating/cooling systems. If you have a pool or solar panels, you can probably add some maintenance for those items too.
- HOA Fees and Homeowner’s Insurance
Not every neighborhood has a Homeowners’ Association (HOA), but if yours does, you can bet there is an HOA fee that you’ll pay monthly. HOA fees vary by neighborhood, and it’s not something you can typically opt out of once you move in, so it’s best to ask about it before you buy a home. Also, some mortgages include your homeowner’s insurance payment, but some mortgage companies do not bundle this together. Just like property taxes, ask your mortgage company if you can bundle your mortgage with your homeowner’s insurance, so you’re only making one payment each month.
