Costs to Consider When Buying a New Home

Jul 26, 2019

Buying a new home is a process that starts with paying for the home itself. Along the way, though, fees and other costs crop up that you may not have expected. And, once you’re in your new home, there are monthly budget items to consider as well. These can feel surprising if they seem to come out of nowhere, but all it takes to balance these costs is a little preparation. Here are some of the costs you should consider when buying a new home.

Count on Closing Costs

Your loan is taken care of and you’ve made a down payment. It’s time to get the keys – but you have one last thing to settle. Closing costs come at the very end of the buying process. They’re paid to the lender and other third parties to cover your application and any processing fees that have cropped up along the way. Closing costs can include underwriting fees, recording fees, and document prep fees.

When buying a new home, you must remember to take utilities into account as well [Goodluz] © 123rf

Plan for Utilities

If you’re upgrading from a smaller home or apartment, your first utility bill might catch you off guard. It’s important to budget correctly for your monthly utilities, though. A larger home means more space to heat and cool. Your agent may be able to provide a utility estimate for your new home. There are also online calculators, such as this one for heating and air, that may help.

“Insure” Your Success

Homeowners insurance is an absolute necessity with your mortgage. Talk to your insurance agent to determine exactly how much to expect each month. Your payments can vary depending on your coverage needs. Homeowners insurance protects your home and belongings against damage and more. And, even after your mortgage is paid, a homeowners policy is a great idea.

Buy Your New Home With Confidence

With just a little bit of research, you’ll know what to expect and the home buying process will go even more smoothly. Still need to discover your luxurious new home in Avondale East? Have a look at our available homes. Then, contact us to schedule a tour and get more information on the home you’re interested in. We’ll walk with you through every step of the process, and you’ll love your new life in Avondale East.