Expenses First Time Home Buyers Must Budget For

Are you gearing up for the exciting journey of purchasing your first home? Before you get caught up in the thrill of Idaho house hunting, it’s crucial to prepare for the array of expenses that come with homeownership. From down payments to ongoing maintenance costs, here’s a breakdown of six major expenses every Idaho first-time homebuyer should start saving for:

Down Payment: One of the initial hurdles for first-time homebuyers is the down payment. Typically ranging from 3% to 20% of the home’s purchase price, this upfront payment can seem daunting. First time home buyers have two great loan programs to look into; conventional and FHA home loans both offer low down payment options. And for eligible buyers, VA loans offer a no down payment home loan.
Closing Costs: As you finalize the purchase of your new home, you’ll encounter closing costs. These encompass various fees such as appraisals, title insurance, and legal expenses, typically amounting to 3-6% of the loan’s value. Understanding these costs upfront can prevent surprises during the closing process.
Home Repairs and Upkeep: Unlike renting, homeownership entails shouldering the responsibility of maintenance and repairs. Establishing an emergency fund is essential to cover unexpected expenses, ensuring you can address issues promptly without accumulating debt.
Furnishing Your Home: Transitioning to homeownership often involves furnishing your new space. Whether it’s accommodating a larger home or replacing outdated appliances, budgeting for furnishings is crucial. Planning ahead can make this expense more manageable and enjoyable.
Homeowners’ Association Dues: If your new property falls under a homeowners’ or property owners’ association, expect to pay monthly dues and potential assessments. These costs vary based on the amenities provided and can range from $10 to $500 per month. It’s essential to factor these expenses into your budget to avoid any surprises down the line.
Home Inspection and Appraisal Fees: Before finalizing your home purchase, budget for essential inspections and appraisals to ensure the property’s condition and value. These fees are typically incurred during the closing process and are crucial for making informed decisions about your investment.

By diligently saving for these essential expenses before diving into homeownership, you’ll be better equipped to handle both expected and unexpected financial obligations. Preparation is key to enjoying a smooth transition into your new home without undue financial strain.

Jesse Stroup

Mortgage Broker | Home Loans of Idaho, LLC

208-907-2846

Jesse@HomeLoansofIdaho.com