Don’t forget to factor these unexpected costs into your home-buying budget.
If you are buying a home, then you have probably calculated your budget to include important costs such as your down payment. However, when you are creating your budget, you also need to account for other closing costs. But what should you set aside money for? Here are some of the commonly overlooked closing costs that you can’t afford to forget.
- Home Inspection
If the home you are looking at isn’t a fixer-upper, many buyers assume that they can bypass a home inspection altogether. However, it’s important to understand that a home inspection isn’t an optional closing procedure. In fact, many mortgage lenders actually require an inspection before they will approve a contract. This is why you need to include the cost of a professional home inspection into your home-buying budget. Additionally, you should also set aside money to address any issues that the inspection might uncover.
- Property Tax
Property taxes vary depending on your home’s location, so knowing the exact amount of your tax is important from a budgeting standpoint. Generally, homes located in larger cities and urban areas tend to have higher property taxes when compared to homes in more rural areas. However, you should not make general estimations about your tax amount when creating your budget. Find out your exact numbers so you know what to expect.
- Utilities
When buying a home, people tend to get so excited that they forget about the utilities that actually make their home livable. If you want an easy way to calculate your utility costs, simply ask the sellers what they pay every year. However, if you want a more accurate estimation, you will have to take into account how the size of the home and your own personal utility use habits affect your costs.
These are some of the common overlooked home-buying costs that you should be aware of. Are you looking to purchase a home in the Hermosa Beach area? Then make sure you are getting the dedicated service and top-tier escrow services that you deserve. Contact the experts at Brighton Escrow to begin your hassle-free home selling or buying process today.
