Buying your first home is an exciting time in your life. However, it’s easy to get lost in all the paperwork, terminology, and different financial aspects of home buying. In order to help you keep your budget (and thoughts) straight, we’ve complied a financial checklist for first time homebuyers to help you navigate the majority of costs associated with buying a home.
Appliances/Furnishings – When budgeting for your new home, remember to set money aside for any appliances or furnishings that you will want to purchase upon closing.
Closing Costs – Closing fees include things like the attorney’s fee, survey fees, and document preparation fees.
Down Payment – Your down payment is the money you pay at closing. It’s the difference between your mortgage amount and your purchase price of your home.
Earnest Money – Earnest money is an upfront deposit that gets applied to your down payment or closing costs.
Insurance – Depending on your loan program and down payment amount, you may pay mortgage insurance. Homeowner’s insurance is also required, and in California, you have the option of purchasing earthquake insurance (which is separate from homeowner’s insurance)
Maintenance – It’s suggested that homeowners put aside money to cover maintenance ranging from lawn equipment to household tools.
Property Tax – Your property tax will vary depending on the state and city that you live in.
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