It is no secret that buying a house comes with a lot of very important steps to take, and is very important not to neglect any of them. You have been approved, you are saving for a down payment, but what about closing costs and moving expenses?
A big mistake is to put all your energy and work on saving for your down payment and forget about other home-buying expenses.
Closing Costs are the costs third parties charge when you finalize buying your property; these costs normally consist of the house inspection bill, premium for owners coverage, appraisal, credit report fees, lawyer fees, and some more. Be aware that you’ll need to pay a number of these fees earlier than the real last day (earnest money, domestic inspection).
You will pay an estimated 3-4% of the house price on closing costs. For example, if you buy a house for $200,000, you will approximately pay $6,000 – $8,000. You will need to save up for that amount on top of your down payment.
Also, don’t forget about moving expenses! Not everyone has a large truck parked outside their home and tons of friends and family to help out with the moving. Keep in mind that hiring a moving company might be necessary or even renting a moving truck. Although this is not as much as the down payment and closing costs, it does add up.
The goal is to make the experience of buying a home as pleasant as possible, there might be some hiccups along the way, but it is better to be prepared and know what to expect when buying a home.
Buying a house is a huge life investment, make sure you have the right representation that looks up for your interest and not their own.