Items to Consider for First Time Home Buyers

First time home buyers or people who have either lived at home or rented for a few years are usually shocked at some of the expenses associated with owning a home. This is not intended to discourage people from purchasing a home. Rather this is a concerted effort to properly inform people of some of the unexpected items that come with owning a home.

Home Owner’s Association-Certain neighborhoods have an association that oversees the homes. Homeowners pay an annual fee in order to continue living in the area. In addition any type of remodeling or change to the home must be approved by the association.

Home Inspection-Whether the home is brand new or 20 years old it is always a good idea to get an unbiased opinion about the structure of the home. An inspector can look over every nook and corner of the home to make sure there are no problems or no potential problems on the horizon.

Property Taxes-Property taxes differ from state to state. Some properties may have to pay a few thousand dollars every year while some may only have to pay a few hundred. This is very important since a lapse in paying property taxes can result in losing the home to the state. The safest approach is to request the lender to set up an escrow so that the taxes are paid automatically every year.

Home Owner’s Insurance-Home owner’s insurance must be maintained by the borrower or the lender will enforce their own insurance which is typically much higher than traditional insurance policies. It is good to have insurance in order to provide protection against burglary, weather damage and home problems such as electrical fire or burst water pipes.