You got the loan, are prepared to pay your mortgage at the beginning of the month but you may be surprised to learn that you’ll need more money for homeownership than just the home loan that you’re paying.  Before you sign on the dotted line, you should be aware of some of the hidden costs of having your own home instead of renting; you’ll want to make sure that you can afford it easily before you make an offer.

Closing Costs

At the time your home loan is settled, the closing costs can add a great deal to the amount of money that you need to close the deal.  These closing fees are sometimes negotiated and can change from state to state; you as the buyer may have to pay the entire amount or the seller may agree to pay a portion of the amount.  Whatever is decided must be written into the contract before you sign it.

Property Taxes

The school district, the emergency service providers, and the Myrtle Beach town government all rely on your property taxes to keep them in business and operating efficiently.  You should ask your real estate professional what the property taxes are and when they are due so that you can make out your budget in advance and be prepared to honor this financial obligation. 

Private Mortgage Insurance

If you paid less than 20% down on your home, you are required to have private mortgage insurance which allows you to buy a house with a smaller down payment.  This insurance policy protects your lending institution in case you default on the loan; after you have built up some equity in your property, this coverage can be stopped.

Decorating

Even though you said you would use your “old” furniture in the new house, you’ll find yourself looking at advertisements and catalogs where new furniture is featured.  You should live in your new home at least two months with what you have before you begin to redecorate your rooms; this gives you a good feel for the home and helps you to pick what you really like over time.  Economically you can change the look of your house with a new coat of paint, new hardware on your cabinetry, or new plumbing and lighting fixtures.  As you get the interior design more to your liking you can begin to choose some pieces of furniture that complement your décor.

Home Maintenance

Even though you don’t want to think about home maintenance, you should still plan for unexpected events that can occur without warning.  Set aside some funds each month to a growing account for a new roof, new heat pump, or to repair or replace everything from windows to water heaters.  To take the edge off of a crisis, have an emergency fund readily available for immediate use.

The cost of owning and maintaining your home can be more easily handled if you plan for the unexpected in an efficient manner.