Six Unexpected First-Time Homebuyer Costs
Are you ready to buy your first home in Colorado? Good for you! Before you start house shopping in the Denver Metro Area, Front Range or Western Slope, you’ll want to make sure you’re financially prepared. Here’s a list of six unexpected costs when you’re buying a home, so you won’t be blindsided.
1. Earnest Money: Earnest money is a deposit on your home purchase application. It lets the seller know you are serious. When the contract goes through, the amount is subtracted from the down payment and closing costs. If it doesn’t go through, you’ll get it back, depending on the contract contingencies. Earnest money is usually 1-2% of the total purchase price.
2. Appraisals: Buyers are usually responsible for the appraisal costs. It’s usually several hundred dollars.
3. Home inspections: Buyers usually pay for inspections. They, combined with the appraisal, ensure the cost of the home is fair and the home is in good condition.
4. Insurance: There are three kinds of insurance: homeowners insurance, mortgage insurance and supplemental insurance. If you put 20% or more down on a home, you won’t be required to buy mortgage insurance. If you need mortgage insurance, you’ll need to pay for a year’s insurance upfront. This can often be rolled into your monthly mortgage payment after the first year’s payment. The amount depends on the home you are purchasing.
5. Escrow Fees and Accounts: You pay lawyers or title company representatives to serve as an independent third party to make sure closing procedures go smoothly and all parties get paid. The fee is usually split between the buyer and the seller. Your lending company may require you to have an escrow account to pay your property taxes and insurance. Make sure you research property taxes before you make an offer on a home!
6. Utilities: When you move to a new town, you often have to pay connection fees for utilities like electricity and gas and setup fees for sewage, trash, recycling, TV, internet, security and more. Talk to your new neighbors to see who they purchase utilities from.
Talk To THE Recommended Mover in Colorado
When you’re ready to set up your move to your new home, be sure to talk to Cowboy Moving & Storage. They are Colorado’s #1 Recommended Mover. They’ve been helping Colorado families and businesses move since 1968. They have a fleet of dependable late-model trucks and vans, teams of moving professionals that have been background checked and all the moving supplies you’ll need for a safe and successful move.
Call 303-789-2200 today.