Costs To Consider In Your Next New Home Purchase
Posted on: 17 September 2019
Buying a home is a decision that has many upfront costs and new expenses, but it does not need to put you into the poorhouse. When you can plan for the home purchase you see in your future, you can also plan to save up and budget for the extra costs that will get you into the home ownership status. Here are some costs you can expect to be responsible for when you buy a house so you can be ready for the experience.
Down Payment and Closing Expenses
A primary cost in buying a home consists of an earnest money deposit and down payment that you will put toward your new home's purchase. These costs are essential so you can first show your sincere seriousness when you make an earnest money deposit to the seller. Your real estate agent will help you write up and submit an offer to purchase, and you will include it with your earnest money.
Your real estate agent should advise you that if you later default on the purchase contract, this deposit is usually nonrefundable and would go to the seller. The down payment may be anywhere from a few thousand to several tens of thousands, depending on your loan requirements or how much you can afford to put as a down payment.
Along with your down payment funds, the closing costs of the purchase transaction are due at the time of the closing meeting. Your closing costs can be usually from two to five percent of the cost of the home you are buying, which your realtor can help you calculate beforehand, and go to pay for many of the essential costs and fees when you buy a house.
The closing costs will go to pay for, for example, a title search and title insurance, along with the property survey, home inspection, and appraisal. The sooner you can plan for a home purchase, you can begin to save up for these costs or plan for ways to pay for them when they are due.
Installing or Updating the Landscaping
When you buy a new home, the home's yard and landscaping may or may not be already installed. Many home builders will leave this unfinished so you as the buyer can make the choices and install the vegetation and trees that you want in your yard.
A yard can be costly, and you might want to budget to save up before your purchase for a yard or include it into your home ownership budget and install it in small additions. For example, you can begin by grading the soil and removing weeds and debris to prepare it for a lawn. Then, you might choose to install a sprinkler system, and later grow a lawn with hydroseed or loose lawn seeds.
For more information about the costs of buying a home, work with a local real estate agent.
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