{"id":12039,"date":"2017-12-15T09:00:10","date_gmt":"2017-12-15T09:00:10","guid":{"rendered":"https:\/\/louisvillehomesblog.com\/?p=12039"},"modified":"2023-08-15T18:22:07","modified_gmt":"2023-08-15T18:22:07","slug":"9-first-time-homebuyers-expenses-know","status":"publish","type":"post","link":"https:\/\/trepryor.com\/blog\/9-first-time-homebuyers-expenses-know\/","title":{"rendered":"9 First-Time Homebuyer Expenses You Should Know"},"content":{"rendered":"\n

When people decide to buy a home<\/strong> they might assume that the only<\/em> expenses they’ll need to make after moving in are the monthly mortgage payment and upgrading the home so it feels like theirs. Prospective homeowners are always shocked when they realize the real cost of owning a home. Understanding all the first-time homebuyer expenses is key to a positive experience!<\/p>\n\n\n\n

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Understanding all the expenses involved with buying your first place will make your experience far less stressful.<\/figcaption><\/figure>\n\n\n\n\n\n\n\n

To ensure a better overall experience, a great place to start is by\u00a0setting expectations accurately for first-time homebuyers<\/a>\u00a0from the start. Once set, we can get to work looking for the perfect home<\/strong> to meet your needs.<\/p>\n\n\n\n

Americans are naturally one of the most optimistic people you\u2019ll ever meet. You\u2019ve been sold the American dream from a young age and taught to believe that it\u2019s all within your grasp. A recent study showed that 85% of millennials believe they\u2019ll achieve the dream of owning a home<\/em> even though they don\u2019t have a plan for getting there.<\/p>\n\n\n\n

The ancillary costs are first-time homebuyer expenses that often take people by surprise. Then they feel overwhelmed and question their decision to buy a home. A report by Zillow and Thumbtack shows the average US home spends $9,000 a year<\/a> on maintenance costs and hidden homeownership bills.<\/p>\n\n\n\n

What are the first-time homebuyer expenses?<\/h2>\n\n\n\n

So let’s not be blind about the costs that are typical for first-time homebuyers. This is one of the most common mistakes<\/a> that first-time buyers make. Instead, we’ll be informed and ahead of the game.<\/p>\n\n\n\n

1. Down Payment<\/h3>\n\n\n\n

Since the 2009 real estate crash, it\u2019s almost impossible to buy a home without a down payment<\/strong>. Having a substantial down payment in saving shows that you\u2019ll be able to meet up with the monthly payment. Most conventional mortgages usually ask for a 5-20% down payment but it can be less with FHA loans.<\/p>\n\n\n\n

If you purchase a home in a rural area you can get a USDA loan that doesn\u2019t require a down payment. However, we advise you to consult your expert Realtor to identify top loan specialists in your area.<\/p>\n\n\n\n

2. Home Inspection<\/h3>\n\n\n\n

While it isn\u2019t mandatory, real estate professionals like Pyramis<\/a> always<\/em> advise prospective homeowners to carry out a home inspection<\/strong> before buying a home. A home inspection reveals hidden issues that might affect the livability or purchase price of the home. The average cost is between $300-$500 depending on the size of the house.<\/p>\n\n\n\n

3. Closing Costs<\/h3>\n\n\n\n

When you purchase a home, you\u2019ll often pay 3-5% of the purchase price for closing costs<\/strong>. These include:<\/p>\n\n\n\n