Have you been entertaining thoughts of buying your first home? It might end up being more costly than you think!
Buying a home is a big investment and owning one comes with an entirely new set of expenses you may not have had while renting. If unprepared, these extras can put a huge strain on your daily finances.
Where Does the Money Go?
- Property Taxes
Before you can get a mortgage, most lenders will require you to show proof of homeowners insurance.
You’re probably used to budgeting for utilities if you are renting. But the cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house.
When you buy a house, most major appliances will come with it, except perhaps the washer, dryer and refrigerator.
This is an expense that you just can’t escape. Property taxes are based on the value of your home. So the more expensive your house, the more you’ll have to pay in taxes.