For first-time buyers, purchasing a great home is a wonderful achievement. And with such an investment, you want to be sure you’re avoid any financial surprises. To get the best picture of what to expect (and what you can afford), make sure you’re do the following:
Get Closing Cost Estimates
To have a more realistic budget, learn about the costs you’ll be paying prior to signing the contracts. Some of these fees include settlement expenses, lender charges, taxes or even home owner associations.
Be Prepared for Upfront Costs
Aside from the the closing costs, ask your Denver real estate agent about other fees you have to pay for like the following:
- Home inspection fee. Knowing the condition of the property you’re going to get is very important. This will help you determine if you need to do major repairs.
- Property Valuation fee. This is the fee amount you’d have to pay for having the property appraised when getting a new mortgage.
- Adjustment costs. This is the amount you have to reimburse the original owner for any utility expenses or prepaid taxes he or she had paid for.
Determine Your Monthly Expenses
You’ll need to consider more than just the mortgage payments. Be sure to factor into your regular budget items like furniture/appliances, maintenance costs, taxes and insurance fees.
Financial experts recommend home owners to devote less than 30% of their income to property expenses. So for first-time home buyers trying to figure out their budget, consider talking with a Denver real estate agent. It will save you time and ultimately money in the long-run!
Are you ready to look for a house you can afford?
Check out Key Tips for Buyers at RE/MAX of Cherry Creek’s blog.