The down payment on your new home is likely the most brutal single hit your bank account has ever had to take, and seeing the effect it has on your finances can leave you breathless. And while it may be the biggest expense you experience in your new adventure in homeownership, it will definitely not be your last. The reward of being a homeowner can be a great one, but the costs and responsibilities that come along with bearing such a title can be overwhelming if you don’t know how to properly plan for it.
Fortunately, you have a friend in the business of new homes who has the know-how AND the elbow grease to make your adventure as well-prepared for as possible. Lennar is here to offer you a few nuggets of knowledge and experience to help get you acclimated to your new role as a homeowner. Here are some potential expenses new homeowners should consider when putting together their fiscal game plan.
- Insurance There are a multitude of factors that can influence how much your premiums will be and what kind of coverage you need. Be sure to properly research the area where your new home is located. Do you need flood insurance or hurricane insurance? Does your home have a security system? Does your insurance provider have a discount available for combining policies? (homeowners/life/auto)
- Monthly/Quarterly/Annual Fees Another incurred cost that many new homebuyers do not factor into their budgetary planning is the annual cost of living in certain communities that are deed restricted, such as CDD and HOA fees. Some purchase agreements include waiving or paying for a portion of these fees. Be sure to ask questions and do your research.
- Utilities Be aware that moving from a smaller apartment or condo to a larger home will definitely have an effect on your utility bills. More room means more square footage to heat and cool (and more cubic feet if you enjoy high ceilings). Some of this cost can be offset with energy efficient appliances and windows, but not factoring in increased costs of energy consumption can lead to a budgetary disaster.
These are just a few of the things that new homeowners can overlook when they are making their monthly budgets. Ask your friends, family, and your realtor what kinds of things to keep in mind when you’re researching your potential new home it will give you a great headstart on your new life adventures!