Are you a first-time homebuyer looking to purchase your dream home? If so, you’re not alone! However, it’s important to be aware of all the costs associated with buying a home. 44% of homebuyers report they weren’t aware of all the expenses involved. From down payments and closing costs to moving expenses and home repairs, there are many factors to consider when budgeting for your new home. In this article, we’ll go over the top expenses that new homebuyers sometimes forget to factor in, so you can be fully prepared for the cost of homeownership. Understanding these costs is essential to achieving your goal of homeownership.
- Closing Costs – These range between 2% to 5% of the loan amount. The national average is about $6,000.
- Moving Costs – The national average cost of moving is about $1,400 with a range from $800 to $2,150. (That’s for a two-person moving team completing a local move of less than 100 miles. The average cost of a long-distance move is between $2,200 and $5,700.)
- Home Inspections – These typically run from $300 to upward of $600 depending on he location and size of the home.
- Title Insurance – The average cost of title insurance is around $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home.
- Potential Renovations – A 2017 survey found that new homeowners spence an average of $10,601 on furniture, appliances, and home repair — in the first year.
As a first-time homebuyer, it’s essential to be aware of all the costs associated with buying a home. Being aware of all the expenses involved is crucial to being fully prepared for the cost of homeownership. With careful planning and understanding of the costs, you can confidently achieve your dream of homeownership.