Buying a home is an exciting time. The seller has accepted your offer, and you're about to complete your home loan paperwork. You've set aside money for the down payment, and you feel as though you're in the last stretch of the purchase. But do you have enough money for the incidentals? Learn about three purchasing expenses you need to budget for when you're buying a home.
Closing Costs and Fees
You may think that the agreed-upon price for the home is the amount you're about to pay. No one would fault you for thinking that, but you'll soon discover closing costs and fees that come with buying a home. You as the buyer pay for most of them.
Closing costs and fees include the title search, realtor payments for negotiating the sale, home inspection fees, and attorney fees if you retained one to help you with the sale. You could incorporate these costs into the mortgage or get some of the fees waived by the seller. But it's best to assume that you as the buyer will have these costs added to the sale price of the home.
You need to get your personal belongings out of your old home and into your new one. Unless you're living a minimalist lifestyle, you're going to need help to get the move completed in a timely manner. You could invite your family and friends and offer them pizza and drinks for their help, but they could decide to not show up and help without worrying about the consequences of doing so.
Instead of relying on your family and friends, you can pay moving experts from a company such as Blue Whale Moving & Storage to help you move your stuff. Professionals from moving companies such as Blue Whale show up when you expect them, do the job as described, and get your belongings from point A to point B without damaging them.
A home inspection should uncover defects that the current homeowner has to repair before you complete the home sale or reduce the price. Sometimes, a home inspector may not catch an issue, or something fails due to bad timing. In most cases, you could go back to the seller to cover the cost of repairs, but you can't guarantee that you'll always get satisfaction because neither the seller nor the home inspector was at fault. Keep a reserve fund set aside for unexpected home repairs and save yourself from the need to get more money from the bank or put repair costs on your credit cards.
Accruing costs during the early stages of a home purchase should mean that you won't have to spend significant amounts of money later when you're living in the home. Once you move past these early stages of the purchase, you can take your time to rebuild your funds while secure in the knowledge that the home you purchased won't throw you a costly curveball months or years later.