Becoming a homeowner for the first time is a big event in your life. Even if you go on to buy a couple more properties in the future, the first one you actually own will always have a special place in your heart. Buying a home in New Jersey isn’t as easy as some may think. Even during the process, you often stumble upon new things you didn’t know before. Not only do you have to collect the money for the down payment and figure out how to pay it off, but there may be other unexpected first-time home buyer costs down the line. Whether you are moving from an apartment to a house or moving to a bigger home, read on to learn what you need to anticipate.
What are some first-time home buyer costs that can surprise you?
We all know that relocation isn’t always cheap. Especially not if you are purchasing your new home! You have to have enough savings to cover every aspect of your moving process, from getting packing materials to paying your NYC movers and packers. If you don’t do enough research before the move, you may be unpleasantly surprised by some of the costs you weren’t expecting. That’s why we’re here to help! We’ll list some of the most common hidden costs that often shock newbie homeowners.
Home inspections and appraisals
These two tasks you definitely shouldn’t avoid. Although they aren’t compulsory, there are quite useful and necessary. Much like hiring professional Upper East Side movers! Before you purchase a property, you need to hire a home inspector to come and take a closer look at it. These people are experts and they know which signs to look out for. You don’t want any leaks or infestations in your new home – and the home inspection will ensure that.
Another one of the first-time home buyer costs that people often forget is home appraisals. While they cost money, they will save you a lot of cash in the long run. They will give you an accurate selling price and ensure you don’t pay more than the property is actually worth. These fees vary and can go from $200 to $600, depending on the state and the size of your home.
If you think that a down payment is enough to get the keys to your new home, you are wrong. You will need an additional 2% to 5% of your home price in order to close the purchase. These fees can include, but are not limited to:
- Attorney’s fees
- Recording fees
- Mortgage taxes
- Lender application fees
- Title insurance
And we haven’t even mentioned the possibility of having to buy new furniture and appliances! Therefore, it is important to have a very detailed moving checklist, which will include all the potential first-time home buyer costs, so you don’t get any ugly surprises.