How to Know the True Cost of a Home
After you buy a home, you’ll be tied to that property for several years. In most cases, a mortgage will have a repayment term of 30 years, and failing to make a payment could result in foreclosure. Therefore, it is critical that you know cost of a home both today and well into the future before agreeing to buy it.
The Direct Costs of Owning a Home
There are several direct costs to owning a home such as the monthly mortgage payment. Other such costs include the interest on the loan and any private mortgage insurance that is rolled into the monthly payment. Furthermore, you have likely accounted for your homeowner’s insurance premium as well as property taxes levied by the local government. Lender fees and other closing costs are also generally disclosed prior to entering into an agreement to buy a home.
The Indirect Costs of Owning a Home
There are also many indirect costs of owning a home that you may not think about before submitting an offer to buy it. For example, you will need to buy furniture, buy lawn equipment and possibly buy appliances. If the HVAC system breaks or the roof collapses, you will need to be ready to pay to have those issues taken care of.
Account for These Costs at the Start of Your Search
Before you talk with a mortgage company in Las Vegas, be sure that you have set a budget that includes every cost that you could incur as a homeowner. Ideally, you will save about 1 percent of the home’s purchase price per year for maintenance and to meet any other needs that the home may have.