Owning a home

Owning a home

Buying a house for yourself is going to cost you a lot of money. You may think that it can’t be that high, so let me introduce you to some of the costs you will have to pay while purchasing a house. Some are paid right at the start when the seller accepts your offer while some costs must be paid after the deal is done.

Earnest money is a check that ranges from 1% to 3% of the home’s purchasing price that you have to provide the seller along with your purchase offer. Down Payment is the money that you pay to the seller upfront, usually after closing the deal. It is the percentage of home’s purchase price, typically from 3.5% to 20%. You may also have to pay Property Tax to compensate the seller for the taxes paid between the closing date of the deal and the end of current tax period since property tax is paid by the owner upfront. There are some other type of costs involved as well like Home Appraisal, Home inspection cost, First year’s Homeowners Insurance cost, and other closing costs.

Then there are the recurring costs involved with homeownership like Loan Payments that must be made monthly, property tax, Homeowners insurance, private mortgage insurance and some other payments. You also have to pay for the utilities like water, gas, electricity etc. but that is common for rented apartments as well.