Once you purchase a home, there are many costs other than your mortgage
payment that you will have to budget for. Many buyers, Brokers and Loan
Officers do not talk about these monthly expenses or use them in calculating
your debt to income (DTI). They are real and you will be paying them once you
are the new owner. Do your-self a favor and ensure that you budget these in
when deciding on a purchase price and a desired payment.
You will not be able to get away from the basic services in most areas.
Water, sewer, garbage are mandatory in most places and the responsibility of
the owner. Even if you don't produce any waste or if you have well water, you
may still have to pay the fee anyway. These costs can vary and you could be
paying $50 or $300.
If you are "off the
grid" that’s awesome! If not, then electricity and gas are two more bills
you may have to pay every month. Some houses are all electric. Some are
electric and gas. This is another $100-$500 depending on area, time of year and
usage. If you are in a high cost area with lots of sun like California you
should look at adding solar to cut down or eliminate your electric bill. Most
solar companies now have options to add solar with no out of pocket costs and
you could see a drop in payment month one!
Phone cable and internet
access are bundled by most carriers and used by a majority of American
households. (Well not phone as this is a declining service since mobile phones
are taking market share.) Add another $60-$250 per month depending on the
services you pick.
For added security you
can have an alarm company monitor your home. Or you can go all out and have a
complete home automation system that will control lights, Heating, Air
Conditioning, as well as door locks from your smart phone. Add another $25-$100
There are other expenses
that can pop up Un-Expectantly and can be costly. In conclusion, there
are many costs that you should consider when setting up your complete home
budget. These are not meant to scare you from buying a new home. You just need
to be aware of them and add them to your budget. It would be a good idea to ask
you real estate broker to get a years-worth of bills from the current owner to
get a better understanding of the actual costs they have been realizing.
And as always it is smart
to have money set aside for surprises!
Author:Sean Safholm BRE#01270334 Phone: 916-920-7000 Dated: April 7th 2014 Views: 3,385 About Sean: Sean Safholm started his career in real estate in 1999 when he was going to college to study real es...
Sean Safholm is a licensed Real Estate Broker in California. He is a real estate investor, broker, and seasoned mortgage pro. Sean has closed over 2000 transactions on the mortgage side of the business and a few dozen house deals for his own account. He has extensive knowledge on all sides of the real estate transaction and is here to assist first time buyers, move up buyers and investors with all their real estate needs.
The news came out a while back that Freddie Mac was suspending its new
"My husband and I were looking to buy a home and needed direction. We needed help finding the best area that was going to fit our family needs as well as finding a great loan that would fit our needs. We contacted Sean Safholm who was wonderful in taking care of us and helped us find the area that worked best for my family. He directed us to a new home subdivision that had the perfect house and met all the needs of my family.
He always answered all of our questions and picked up his phone every time we called. Even though he was not our real estate broker, Sean helped us with our financing to purchase our home. We feel we got the best deal in town with our mortgage. I priced/shopped rates with a few lenders and by far Sean Safholm beat them not only in price and payment, but also in customer service! I continue to recommend Sean Safholm to all of my family and friends.