When you make the jump from renting an apartment to owning a home, there are certain expenses that you will need to pay that weren't previously in your budget. The following are three of the most substantial new costs you will need to prepare for after buying your first home:
- Homeowner's insurance – Buying a home will likely be the biggest purchase you make in your lifetime, so you will want to protect your investment. The best way to do so is by obtaining homeowner's insurance. This type of coverage can provide protection against damages incurred during burglaries, fires and other serious events. You will need to pay a monthly premium, which should be included in your budget moving forward.
- Property taxes – Owning a home will mean paying a new set of taxes. In fact, property taxes are often the second biggest expense faced by new homeowners. The actual cost will vary based on where you live, and is calculated by multiplying the state's tax rate by the value of your home.
- Maintenance and upkeep – One of the biggest luxuries of renting an apartment is that your landlord takes care of all your home repairs. However, now that you own a home, that is no longer the case. You are now in charge of these projects, which can make having your own home more expensive than you had hoped. Perhaps the best way to avoid costly repairs is to complete an extensive inspection prior to completing a purchase.
To receive a free quote, simply visit www.capwestmortgage.com/quote or call (866) 614-5959 to speak with a CapWest Mortgage representative today.