Buying an Austin Texas Home for the first time is an exciting experience because you’re finally going to be a homeowner after you’ve been renting but even though the home buying process is typically portrayed on shows like House Hunters as being all about how much the home costs, the reality is that your budget as a home buyer should also include money for unexpected costs after your offer is accepted and you’ve moved into the home.
In this post we will cover some of the unexpected costs that you will encounter as an Austin Texas Home buyer so you will be better prepared and educated about the home buying process.
Cost #1 – Home Inspections
The home inspection is by far one of the most important costs that you can expect to pay as a home buyer because a thorough home inspection will tell you what’s really going on with a home, especially behind the walls.
You will need to have a thorough general home and termite inspections completed before moving in just so you know without a doubt that there aren’t any other problems going on with the home.
Home inspections will cost you about $500 to $1,000 total and they are worth the investment especially if you plan on buying a new home because not every builder uses the same quality of finishes and a home inspection will give you confidence in your investment and you will know which items are under warranty if repairs need to be made to your new home.
Cost #2 – Closing Costs
Yes, there will be closing costs when you buy Austin Texas Real Estate and these costs will typically amount to 2% to 5% of the homes purchase price. Example: Let’s say that the home in Austin you plan on buying costs $200,000, you can expect to pay upwards of $10,000 in closing costs.
Closing costs include fees paid to your lender, escrow, title and attorney plus you may have to pay some interest as well that’s been prorated from when you close to the first of the next month.
Before buying a home it’s best to get specific information about closing costs and verify with your lender what the fees are you will be expected to pay with your mortgage loan.
Cost #3 – Ongoing Homeownership Costs
Last of all, but most important, some of the additional costs you can expect to pay as the owner of an Austin Texas Home include: interest, private mortgage insurance (if you pay less than 20% down), property taxes and homeowners insurance.
These ongoing costs can easily add an additional $200 to your monthly mortgage payment so it’s best to work on your budget right now and make sure that you can afford to continue paying your regular bills, mortgage and homeowner costs once you purchase a home.
Buy an Austin Texas Home
To get started with buying an Austin Texas Home contact the Kent Redding Group today by calling us at (512) 306-1001 or click here to connect with us online.