You will pay more than the advertised price
If you’re looking for a house to buy, it’s important to remember that the advertised price is not the final price. The advertised price includes the principal and interest (and sometimes property taxes), but it doesn’t include insurance.
If you are planning on getting a mortgage, you will also have to pay closing costs. These could be thousands of dollars and include things like an appraisal fee, title search fees, credit report fees, and more.
The closing process is super confusing
The closing process is the final step (usually) in the home buying process, and it’s a huge milestone!
It can also be confusing, especially if you’re new to buying a home. Here are some things to keep in mind:
- First off, there are many people involved in this part of the process and they all have different responsibilities. This can make it difficult for buyers to understand exactly what their role is, but don’t worry—we’ll go over everything you need to know before we get started here!
- Closing processes vary based on state laws and regulations, so not every county or city will run their closings exactly the same way as others do. If you’re looking into purchasing a property somewhere new or unfamiliar then consider checking out your local resources beforehand so you know what steps must take place during your closing day.
You will have to ensure your home (I know – a no brainer)
Home insurance is a contract between the homeowner and the insurance company. Home insurance covers your home structure, personal property, and living expenses if it’s damaged or destroyed by a natural disaster, fire, or theft.
That being said, there are many different types of policies that can be taken out to cover these risks as well as liability for any damage you cause to others’ property.
Your insurance bill will be higher and will increase each year.
This is one of the biggest changes I’ve noticed after buying a house. My insurance bill is now about $300/month for a $500,000 home. This was almost double what my renters’ insurance cost when I lived in an apartment! And it’s not just a temporary increase—my premium will continue to increase each year based on inflation and other factors (such as if any damage happens to your home).
The reason why your homeowners’ insurance will be higher than your renters’ is because of two main things:
- The value of your property has increased significantly since you bought it (and will continue to)
- You now have more personal belongings in addition to the structure itself that need coverage
Your city wants their money too
It’s easy to forget that your city wants their money too. It’s not a surprise when you get a tax bill each year, but what about the first time you see your assessment? There are many factors that go into determining how much you pay in property taxes each year, and it can be confusing for first-time homeowners.
Property tax is due on the same date every year, usually late in December or early January. If you haven’t received it by then (or if receiving your first bill feels like Christmas morning), check with your county assessor’s office to make sure they have all of your information correct and up-to-date. You may also be able to call them directly if there’s something else they need from you before they can process the paperwork properly!
Renters do not have to pay for all these things
As a renter, you don’t have to pay for:
- Property tax. You will not have to pay a property tax if you rent, as the landlord is responsible for paying this fee.
- Insurance. If something happens to your home, such as fire or flooding damage, the landlord’s insurance policy will cover most of it unless there are any clauses about prior claims in their contract with you (in which case they’ll probably ask that you reimburse them).
- Repairs and routine maintenance costs. If something breaks down in the house that isn’t covered by the warranty (and even then sometimes), landlords are often willing to fix things on their own dime rather than ask tenants for cash right away—but some may charge fees anyway just so they feel like they’re getting their money’s worth out of these repairs! Either way, though this cost is one-time only; owners won’t charge every year like taxes might do so keep that in mind when calculating potential profit margins based upon initial investment costs vs annual expenses versus potential revenues from renting out said property once purchased; it may make more sense financially speaking even if less fun overall personally speaking 🙂
Not everyone will stick around for repairs.
When you buy a home, it’s natural to want to do the work yourself. There are times when that’s a good idea—like installing an air conditioner. But if you’re not sure what you’re doing, there’s no shame in hiring a pro. You’ll have more time and energy for other things if you don’t have to worry about making mistakes or waiting on someone else.
I also wish I knew how important it would be to trust my instincts on repairs/projects. If something doesn’t feel right (or looks weird), then listen! Don’t waste money by trying something yourself unless absolutely necessary.. This is especially true when it comes to plumbing and electrical work—things can get messy quick when done incorrectly
Home buying is a large financial, emotional and practical commitment.
Buying a home is a big commitment. If you are not ready, both financially and mentally, don’t buy a home.
Home buying is a large financial, emotional and practical commitment. It’s important that homeowners are emotionally prepared to take on this level of responsibility before they buy their own property.