Buying and maintaining a home is an expensive venture. From finding the perfect mortgage with the appropriate fees, to the year round upkeep and maintenance, this “investment” requires a lot of time and capital. That being said, if you do it right, owning a home can be one of the most rewarding things you will ever do. Eventually you will presumably own the house debt free, and have made many lasting memories within those four walls.
Most people are going to need to take out a loan to buy a house, but not all companies and loans are the same. Often times too much emphasis is paid on the interest rate, and not enough on all the fees that are tacked on to obtaining a mortgage. For instance, NPBS mortgages online can come with lower fees than your typical brick and mortar lenders. A brick and mortar lender comes with a lot more overhead, and they build that into you loan origination fees.
Homeowners insurance is expensive and complicated. The more your house costs the more the insurance to cover the dwelling will cost. You need to make sure that you look online and shop insurance companies, bounce their rates and fees off each other and don’t just go with the first one you find. One caveat, make sure you purchase enough insurance to cover not only the cost of repairing the house, but to rebuild it from the ground up, this is a common mistake that many homeowners fail to recognize until it’s too late.
Keep an emergency fund on hand for general maintenance throughout the year. Things like your air conditioner, furnace, and water heater are going to go out eventually. I should know, I have had two of the three fail on me in the past couple years and they aren’t cheap replacements. Also, you want to make sure you have annual maintenance done on your appliances. This will insure that they last longer.
Lastly, don’t forget all the extras like lawn maintenance and utility bills! The bigger the piece of property the more lawn and garden there is to maintain. I don’t know about you, but I don’t exactly have a green thumb. I pay a lawn care company weekly to keep up my yard, and while it’s fully worth the price, it can be costly over an entire summer season. Utility bills vary by season and by size of the home. A nice big house can be a great thing, but it will also cost you more to heat and cool it. Keep that in mind when shopping around for a new home!