3 Top Hidden Costs of Owning a Home

It isn’t hard to figure out what your cost of living is when you rent, but what about when you become a homeowner?  Surprisingly, there are a few costs that many first time homebuyers overlook and they can sure add up quickly!

1. Utilities:  We’re not just talking about water, cable and electricity – what about pest control, lawn service and alarm/security systems??  Make sure you’re allowing a little wiggle room each month in order to accommodate these necessary and somewhat hefty costs.

2. HOA dues:  Whether you’re a home or condo owner, the monthly rate can jump with any improvements/violations that are assessed by the HOA.  It’s important to understand the bylaws within each community and keep a copy of them for easy reference.

3. Private Mortgage Insurance – If you are not putting 20% down on a loan, you will have to have mortgage insurance.  Over the past few years, the cost for this has risen dramatically while interest rates still remain low.  Be sure to talk with your lender about each of the costs associated with a loan and your specific financial situation.

Homebuyer’s New Year Resolutions

1. Save for a down payment. 

Although 20% down  would be ideal so you can forgo the pressures of having to have insurance for your mortgage - it’s not required.  In fact, an FHA mortgage only requires 3.5% and you can gain some good equity with this minimal amount.

2. Ensure my credit score is as good as possible before applying for a mortgage. 

It won’t matter where you go, your credit will be checked.  To get started, order a free credit report to get an idea of where your credit stands.  Whatever your score, a mortgage lender will be able to give you the best advice and guidance on obtaining the lowest interest rates. 

3. Find a reputable professional to help me throughout the process.

Many homebuyers try to navigate this process alone which can be extremely stressful and lead to many unforeseen problems.  By finding the right agent, you’ll have someone who will represent your best interests in every way.  Moreover, the buyer representation service is at NO CHARGE to the buyer and is customarily a fee paid for by the seller.

4. Take a homeowner’s course that will prepare me for the responsibilities that come with a mortgage and a new home.

There are many courses conducted by the state; however, The Oldham Group offers a free homebuyers’ session for all its clients every 3rd Thursday of each month.  You can easily email our team for more information by contacting info@oldhamrealestate.com.

Homebuyer's New Year Resolutions

1. Save for a down payment. 

Although 20% down  would be ideal so you can forgo the pressures of having to have insurance for your mortgage - it’s not required.  In fact, an FHA mortgage only requires 3.5% and you can gain some good equity with this minimal amount.

2. Ensure my credit score is as good as possible before applying for a mortgage. 

It won’t matter where you go, your credit will be checked.  To get started, order a free credit report to get an idea of where your credit stands.  Whatever your score, a mortgage lender will be able to give you the best advice and guidance on obtaining the lowest interest rates. 

3. Find a reputable professional to help me throughout the process.

Many homebuyers try to navigate this process alone which can be extremely stressful and lead to many unforeseen problems.  By finding the right agent, you’ll have someone who will represent your best interests in every way.  Moreover, the buyer representation service is at NO CHARGE to the buyer and is customarily a fee paid for by the seller.

4. Take a homeowner’s course that will prepare me for the responsibilities that come with a mortgage and a new home.

There are many courses conducted by the state; however, The Oldham Group offers a free homebuyers’ session for all its clients every 3rd Thursday of each month.  You can easily email our team for more information by contacting info@oldhamrealestate.com.