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Expect the Unexpected: The Costs of Buying a House

Posted on October 12, 2018 Your Home 0 comments

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Buying a home, especially for the first time, comes with a learning curve. But don’t worry, we’re here to help you every step of the way.

A first-time homebuyer could easily overlook fees and expenses that come when purchasing a home. That’s why it’s important to learn about all of the costs you will have to budget for. Here are 4 costs to consider when buying a home.

Home Inspection

A typical home inspection will usually cost a few hundred dollars. What many buyers don’t expect is that more than one home inspection may be needed. In addition to a home inspection, a more in-depth roof inspection and a visit from a termite specialist may also be necessary. As a rule of thumb, it’s good to set aside $1,000 to cover all inspections costs.

Closing Costs

Closing costs can be difficult to pre-calculate, as they can vary in range. Generally, closing costs will account for 2 – 5% of the purchase price, but you can receive a more accurate estimate when getting prequalified by one of our loan specialists. Also, a savvy realtor can sometimes negotiate the seller paying a portion of the closing costs. Ask your UHCU Loan Specialist for information about realtors we have experience working with.

Insurance

While many of the expenses to consider when buying a home are a one-time cost, homeowners insurance is an ongoing expense that you’ll be required to have. You’ll need to pay attention to the details, as some insurers reimburse the Replacement Cost of lost or destroyed items, while others only the Actual Cash Value (ACV). ACV is the Replacement Cost minus any depreciation, so the reimbursement amount would be smaller. So while a policy that reimburses Replacement Cost may cost more, it may be worth it in the long run. UHCU can help you understand the expected insurance costs, like the first year insurance premium payment requirements, and can even provide an insurance quote through UHCU Insurance Services.

Property Taxes

Property taxes are paid to the county tax collector of the area your house is located in. The amount you pay depends on the area and the type of property. Part of the benefit of working with UHCU during the home buying process is that we can help you understand what your property taxes will be.
 

So while it’s easy to feel overwhelmed, it’s important to remember we’re here to help you explore all your options. Don’t rush the process and we’ll make sure you understand the best path forward.


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