Aug. 23, 2017
Whether you won the lottery, received a large inheritance or are simply a wonderful saver, buying a home with cash will allow you to the freedom of making NO mortgage payments monthly. Sellers also love cash orders because that means they do not have to wait for your leader to approve the funding. Is seems like a win-win situation, doesn’t it? Yes and No. There are still other costs that occur when you have a home that people overlook. Keep reading to find out what expenses you are still responsible for when you buy a home with cash.
When purchasing a home, there are still closing costs that offer. Some of these include a transfer to charge, title insurance, processing and appraisal, home inspection. Even when you are purchasing a home with cash, there is still a fee for these items.
Unfortunately, property taxes are always going to be there even if your home is fully paid off. Remember to include paying property taxes in your monthly budget.
The cost of your homeowner’s insurance will depend on the size as well as the value of your home, the location, your deductible and finally your coverage. Make sure to speak with a current insurer about the home and area you’ll be moving to and receive a few different insurance quotes.
Things break, it’s inevitable. That is why it is a good idea for every homeowner to put aside some money every month for unexpected maintenance.
If you’re buying a home in a community, it will probably have a monthly or annual HOE fee. This number can vary from only a few dollars per month to hundreds. These fees are paid by everyone in the community and go towards maintenance of common areas and any perks your community may have such as a pool.
Utilities such as electric. Gas. Water, sewer and trash should always have been factored into your monthly budget. To get a more exact amount, make sure to ask your realtor prior to purchasing a home. Your utility bills can fluctuate from season to season, so it is important to keep this in mind if you are moving to a new climate.