What are some overlooked expenses when it comes to buying my first house?

Question

I'm 23 and buying my first house hopefully in the spring. Whats a good downpayment? I'm completely new to this, does anyone have any advice not just about how much but in general, you know, things to watch for or mistakes that are easily made.

Answer 1

The biggest mistake is buying the wrong house. Get it inspected and if something is significantly wrong with it walk away from it no matter how much in love with it you are

Answer 2

I’ve been a homeowner for about 50 days now.

We were prepared for taxes, insurance and mortgage payments, but it’s the variable expenses: household items, paint, window treatments that add up. Then there’s all the things that break or had or will have to be repaired/replaced: leaky faucets, older appliances, old windows and doors, etc. Basically, once you assume ownership, you sign on for a never ending project. And always keep in mind that anything can break at any time. Even home warranties often have deductibles.

Also, we use to live really close to work, but now our commutes are 6-7 miles each way instead of 1-2. Extra gas adds up. I feel like we also go through basic supplies like paper towels, TP, and cleaning supplies faster than in our apartment. Instead of going to Target once or twice a month, it’s more like once or twice a week now.

And it’s not just the money – I don’t think anyone can really prepare you for how much time and energy it takes to get someone else’s house ready for you to live in. I felt the need to clean every inch, and had to do it twice: once before we painted and again after we refinished our hardwood floors. For the first month, we literally did nothing but work and then go home to work for several hours on the house.

Answer 3

1st and foremost, do your homework on Home Buyers Warranties! Realtors don't tell you much about them and then they shove them in your hand at the closing and you have to live with them. Do a quick search on the net for them but my particular preference is Global Home Warranty.

2nd, the BEST rule of thumb is get the most house you can now because the longer you live in it, the smaller it will seem. Especially if you add a wife and kids later. THE IS NO SUCH THING AS A STARTER HOME!

3rd, you should put away money for things that you would not imagine that you will need. Brooms, mops, shovels, lawn mowers and loads of other things will be required.

4th, when looking at houses, if you are considering purchasing a home with a garage...ALWAYS ask to pull your car in the garage. Insure yourself that you are comfortable with the parking situation. All garages are NOT created equal!

5th, look for houses that are convenient to things you do most...work, school, church. If you live on the west side of town and do most things on the east side of town, you will find yourself spending a lot of money on gas. So no matter how much you save on the house, you will encure the expense on fuel.

Finally, get the longest mortgage period you can. There are 40 and 50 year mortgages out there. Get one if you can because you can always send extra money when you have it, but if you take a 10 or 15 year mortgage, you can't pay less than the mortgage note. You can pay a 30 year mortgage like it is a 15 year note and pay your mortgage off early.

I have been in the business for over 15 years. I can be reached for questions at [e-mail].

Answer 4

1. I find that the overlooked expenses are usually taxes and insurance, usually rolled into the mortgage.
2. Water and electric and or gas could get up there too depending on the size of the house and lot.
A good downpayment is what you can afford. Typical is 3-5% is a safe bet but with 20% you avoid paying mortgage insurance.
First things first. Find a good Team, Realtor, Mortgage Broker, Attorney if needed and Title/Escrow Company.
You'll find with a good team usually your real estate transaction will be mostly smooth and you will have a good understanding on what the heck your doing. I will have clients call me at midnight to ask me questions and I love it though usually not at midnight. But ask questions and get educated.
Find out what you can qualify for and your areas of interest.
Licensed Realtor in AZ.
e-Mail me if you have any other questions

Answer 5

20% is a good downpayment. If you put less down you will have to pay PMI which will increase your payment until your house goes up in value or you have paid down the loan some.
My main advice is to get the house inspected and take a good look at the neighborhood to make sure it is improving not deteriorating. You want a house with resale value in a few years.
The expenses that you may not think about is additional furniture, tools to make household repairs, equipment to do yard work, a savings account for household repairs, insurance and taxes.

Answer 6

Free classes are often offered at local community colleges for first time or returning home buyers. They cover a lot of the more challenging topics from down payment to APR percentages. I would suggest checking into this as the classes are often free and only take a few Saturday's of your time. Being WELL informed, or as informed as possible is where I would start.
It could save you in the long run from making smaller mistakes that could add up later!
Good Luck!

Answer 7

Less than 20 percent down payment requires paying for mortgage insurance.

Overlooked expenses: Homeowners insurance, property taxes. These are usually rolled into the mortgage payments. Then there is maintenance and repairs, yard care, periodic painting. Eventually things like roof replacement, appliance replacement, carpet replacement etc. often surprise new owners. There may be homeowners association fees.

Good luck. Enjoy your new home, the American dream.

Answer 8

No you shouldnt would desire to. If the veranda became into already there or whether you equipped it the plans have been already authorized that way. i'd supply up chatting along with her and forget approximately approximately her.whether she threatens criminal action enable her. she would be in a position to possibly get no the place and the Assocciation would desire to be waiting to enable you know something, yet they could be incorrect too whilst it receives right down to the regulation. I raised this query with a construction which would be ablt to work out into my " backyard" and residing house, the city council pronounced too undesirable, thats merely the way it somewhat is that if the different belongings is provided to code. If it have been that way definitely everyone would have problems wouldnt they.. additionally I easily have continuously heard the different, that she would would desire to pay if she needed the privateness. Shes merely yankin your chain. And if she is going for the proportion in value path, you dont would desire to try this the two, . call the city making plans, residing house inspection and so on. on your city they might enable you know whatthe codes are, for unfastened.

Answer 9

See your home and then chat to the neighbours to see if they can give any clues regarding the house. Have a full survey done for your own use. Have a good look round and ask questions if they have redecorated like 'why', what are they trying to hide. Look carefully in built in cupboards for any damp. Double the amount of spare cash you think you will need and then go and enjoy your new home like mad.

Answer 10

There is a great book in the "Dummies" series for first-time homebuyers. Worth a read.