Hello soon to be homeowner!
Are you planning to take that bold step into the exciting world of home ownership in beautiful Central Oregon? As exciting as this journey may be, for first-time home buyers, it can often be a puzzle trying to uncover all the potential costs involved. The price of the home is only the beginning - there are many "hidden and forgotten costs" you should be well-prepared for. Knowledge is power, and we're all about turning first-time home buyers into savvy homeowners.
Let's take a look at the top 5 hidden costs every first-time home buyer needs to know:
1.**Home Inspection and Appraisal Fees**:
Before getting a mortgage for a property, your lender will require a professional appraisal to assess the market value of the home. Also, you should never skip having a thorough home inspection to identify any potential issues that could cost you dearly down the road. These necessary procedures incur costs, often in the hundreds of dollars.
2. **Closing Costs**:
Often overlooked, closing costs, which include notary fees, property taxes, credit check fees, and legal fees, can add up to roughly 2-5% of your home's total purchase price. It's essential to budget for these expenses before making your home buying decision.
3. **Home Insurance and Property Taxes**:
Homeowners insurance is mandatory and sometimes a forgotten expense. Property taxes are equally inescapable, varying by location and the appraised value of your home.
4. **Maintenance and Repair Costs**:
Unlike when you're renting, as a homeowner, you're solely responsible for all maintenance and repair expenses. This could include anything from a leaky tap to a new roof. A common rule of thumb is to budget 1% of the purchase price of your home, annually, for
ongoing maintenance.
5. **Utility and other Bills**:
It's not just about the mortgage payment. Utilities bills such as water, irrigation fees, gas, electricity, internet, and waste management services can add a substantial amount to your monthly expenses. So remember to budget for these additional costs when working out if you can afford the house.
Purchasing your first home is a significant milestone, one you should approach with as much information as possible. By understanding these hidden costs, you can plan, budget
effectively, and focus on the joy of creating a home in Central Oregon.
Remember, as your experienced and dedicated real estate broker, I am here to guide you through all the nuances of your first-time home buying experience. Here's to uncovering the secrets of home ownership together!
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