Buying a house can feel a bit like a game of whack-a-mole—hit one thing down and another pops up. Here are four costs you might not anticipate in the home buying process.
1. The Inspection: It’s easy to remember the inspection is a hurdle to buying a home, but we often forget it’s also a financial hurdle. An inspection can cost a few hundred dollars, and doesn’t guarantee the house will pass inspection, so keep that in mind and be prepared.
2. Bringing cash to the table: Closing costs are expected, but what isn’t anticipated is how much extra cash you might need to bring to the closing table. Some lenders require you to pay a year’s taxes and mortgage upfront. And if the seller paid any expenses, you’ll be required to pay back a pro-rated amount.
3. The move: Whether you plan to move yourself or hire someone, moving can carry loads of additional costs. If hiring movers, make sure you get quotes from a few companies and ask for referrals from friends.
4. Immediate costs: It’s important to budget for the immediate costs of home ownership like changing locks, utility fees, as well as the unanticipated expenses in the first year of owning your home.
Set aside some savings now and you won’t have to rely on your credit card through these unanticipated expenses. The same does not apply to your next game of whack-a-mole.
Photo by Cody Hughes @clhughes21