Although Property Taxes can vary from city to city and state to state, the average is about 1% of the value of the home. These taxes can either be included in your monthly mortgage payment or billed to you annually. Your Realtor and your lender should go over these figures with you so there are no surprises.
Homeowner’s Insurance rates can vary depending on factors such as size of the home and its age. Rates in general average about $35 per month per $100,000 of home value. Some lenders require specific amounts of coverage and may also require flood insurance in certain areas. You will need to contact a few companies to compare rates and coverages in order to find a policy that suits your needs.
Inspection and Appraisal fees need to be paid either at the time of service or through closing. An inspection of the home is one of the wisest choices you can make before completing your purchase. Inspections generally cost about $500 and up depending on the size and type home and what is included in your inspection. Appraisals can cost about $300 and up, and payment for the service may be required earlier than closing.
Preventative Maintenance and Repairs can be needed without warning from time to time. It is recommended to set aside about 1% of the value of the home per year for maintenance and/or repair.
Closing Costs can vary from 1% – 5% of the value of the home depending on the loan program you have chosen. This usually includes attorney fees, loan application fees, appraisal fees, recording fees, and title insurance. The Lender and your agent will go over these costs so you understand all fees associated with the loan and purchase.
Mortgage Insurance is an additional insurance that lenders may require when borrowers have less than a 20% down payment. If required, the payments will be added to your monthly loan payments.
Home Owner Association Fees are required in some neighborhoods and condominiums. These fees are to cover the costs of maintaining common areas. Fees can be higher in neighborhoods with more amenities, such as pools and tennis courts. Your Realtor should know what the fees will be for each home you tour.
Home Warranty Coverage can protect the buyer from expensive repairs or replacement when a home is not brand new. These warranties average $300- $500/ year for basic coverage with $100 -$300 more for additional coverage. It is also wise to ask in your offer that your seller purchase one for you if they have not offered such in the listing.
Lawn Care costs can be overlooked when buying a home for the first time. You may choose to purchase equipment to maintain your own lawn or hire landscaping services. Lawn service can vary from $30- $50 per cut to much more depending on size of the lot and contract with the service company. Mowers can be cost from $100 for a used model to hundreds for a new machine.
Moving Costs can typically run about $1200 for an instate move to about $5500 or more for a long distance move.