First-time homebuyers tend to be a very excited and optimistic bunch. They are looking forward to their first investment into the real estate market, they can get caught up in all the promises that it offers and unfortunately, they can often find themselves shocked at the unexpected costs that can pop up. Purchasing a house is never going to be cheap, but it’s hard to calculate the total price if you aren’t aware of all the costs involved.
These three costs are often described as “unexpected” by first-time buyers, so this is your chance to become an informed and prepared buyer.
So Many Fees – Are You Informed?
Did you know that the price of the house isn’t the only cost that you’ll incur when purchasing a home? There are many fees that you’ll also be responsible for. These can include:
- Mortgage fees, this is also called an arrangement fee and tends to cost £1,000-£2,000
- A valuation fee may be required by the mortgage lender to ensure the property is worth the asking price
- Broker fees, if you plan on using a mortgage broker, ask them if they charge a fee or if they are “paid” by the mortgage lender in the form of a commission
- A homebuyer survey is extremely important, as it is a detailed report regarding the condition of the house
- Legal fees
There can be other costs, too, such as the cost of a moving company, it’s wise to budget ahead and factor these into the total cost of purchase.
Home Insurance Can Come As a Surprise
Then there is home insurance, which can come as a surprise to first-time buyers. This isn’t always talked about so first-time buyers may not even realise it exists. Even if they are aware of it, the cost itself can come as a surprise. For those searching for home insurance NI, it’s a good idea to get some comparison quotes through a site like CompareNI. You want to be sure that your home insurance quote is the best one out there and that you don’t end up over-paying.
As you shop around for home insurance coverage be sure to look at the details, as they don’t all cover the same things. This will reflect in the price of the premium.
Home Repairs and On-Going Maintenance
While you may not need to do much in terms of repairs and maintenance when you first move in, at some point both will likely be necessary. Regular maintenance helps to keep the house in tip-top shape, whereas repairs can happen thanks to wear and tear, age, and unforeseen events. Money experts tend to recommend that homeowners set aside a repair fund that they can dip into whenever necessary. This will help lessen the blow when these issues pop up.
The Costs Can Add Up Fast
Purchasing your first home is an exciting moment in your life, but to ensure that it’s smooth it’s important to do your research and be aware of all the costs and fees associated with homeownership.
