Buying your first house is an exciting time. You’re ready to get out from under a lease if you’ve previously rented. But the thing is, though you might not pay rent anymore, you have other bills. Those don’t stop because you now own your house. So, when you decide to buy, make sure you have the money to still support yourself. What are some of the new costs that might arise when you buy your first house?
1. Increased utility costs
Houses are generally larger than apartments. Therefore, you’ll likely use more water to care for the lawn. Or, you might have to use more energy to heat or cool the interior. So, you might see your water or electricity bills increase. You should use all available conservation methods. That way, you can keep costs low. It's as simple as turning off the lights when you leave a room.
2. New maintenance costs
When you rented, you lived in a home owned by someone else. That means they likely paid for any home projects on their own property. Now that you own a home, that’s likely your responsibility.
For example, in the rental, your landlord might have mowed your lawn, or paid for repairs to appliances. They might have also handled structural repairs. Now that you own the home, that’s your job. Make sure you can keep enough in savings for rainy days.
3. The mortgage
Buying your home might not mean you own it outright, at first. Homes are expensive. So, most first-time buyers finance the home with a bank or other lender. If this is your choice, you’ll pay off the home over time by making payments to the lender.
Think of mortgages like a credit statement. They might accrue interest, and you’ll have to make payments on time to keep possession of the home. If you fail to pay, you run the risk of foreclosure, not to mention financial loss and damage to your credit. Don’t let this happen to you.
4. Homeowners insurance costs
Most homeowners need to insure their properties. Indeed, if you have a mortgage, the lender will likely require you to get coverage. It’s a cost you must factor into your budget.
If you carried renters insurance, you likely know to plan for insurance costs. However, homeowners insurance often is more expensive than renters coverage. This is because it takes more coverage to insure the house now in your possession. You’ll also want to retain liability and possessions coverage on your policy. So, for the extra cost, you’ll also get a more comprehensive blanket of protection on your property.
Contact us for a Oklahoma City home insurance quote at (844) 748-5675.