Unexpected Home Buyers Expenses Payment Shock For Borrowers
This ARTICLE On Unexpected Home Buyers Expenses Payment Shock For Borrowers Was PUBLISHED On August 9th, 2019
The American Dream is still owning your own home.
- More millennials are getting qualified for a mortgage and are shopping for their first home
- Rent prices are soaring nationwide
- In some areas, a mortgage payment is less than the market rents
- VA and USDA loans allow home buyers to get 100% financing
- Sellers concessions can be used for closing costs
- Homes have been appreciating year after year since 2012
- Due to increased home prices, both HUD and the Federal Housing Finance Agency (FHFA) have increased FHA and Conventional Loan Limits for 2019
- FHA Loan Limits for 2019 is $314,827
- Conventional Loan Limits for 2019 is capped at $484,350
- The Department of Veterans Affairs (The VA) recently eliminated the maximum loan limit on VA Loans
- There are unexpected home buyers expenses when buying a new home
In this article, we will cover and discuss Unexpected Home Buyers Expenses for new home buyers.
Costs And Unexpected Home Buyers Expenses To Consider By First Time Home Buyers
As a new homeowner, you will not have the luxury of calling your landlord for the following:
- Repairs required such as furnace/air conditioning breakdowns
- Appliance repairs
- General maintenance
There will also be unexpected home buyers expenses that first time home buyers need to be aware of.
- There are predictable costs such as the new mortgage
- However, there are additional costs associated with homeownership such as property taxes, homeowners insurance, utilities, water bill, scavenger services, and others
- Maintenance and repairs can become expensive
Things taken for granted such as landscaping and snow plowing are a new homeowner’s responsibility.
Maintenance And Repairs For New Homeowners
Shopping For Homeowners Insurance
Mike Gracz, the National Sales Manager at Gustan Cho Associates and an expert in homeowners insurance, advice the following:
You’re best off buying a replacement cost policy which will cover the cost of replacing the items that get stolen or damaged in a fire, rather than one that gives you the depreciated value of the items lost. According to the Insurance Information Institute, the average annual premium is $1,132. But you can save yourself a significant amount by shopping around, both online and off. And ask about what discounts you can get, including discounts for security systems, working from home, and bundling coverage for your home with your auto insurance policy. Be aware of the limitations of homeowners insurance Policies tend to only protect home and possessions within, but if you’re buying a condominium, the co-op might require a liability rider for accidents on the property. And if you’re in a flood zone, you’ll need flood insurance as well.
For more information about the contents of this topic and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.