5 Costs To Budget For When Buying A Home | Vipon

Before You Start Shopping for a Home: 5 Essential Costs to Consider

Buying a home can be an exciting yet overwhelming experience. To ensure you're prepared, it's essential to understand the costs involved in this investment.

• Down Payment**: A down payment is typically 20% of the purchase price. However, some lenders may accept lower deposits or require a larger down payment for certain loan programs
• Mortgage Interest Payments**: The monthly mortgage payment includes principal, interest, taxes, and insurance (PITI). This can range from $500 to $2,000 per month depending on the location, property type, and loan terms.
• Property Taxes**: Property taxes vary by location but typically range between 0.5% to 2.0% of the home's value annually. This amount is usually paid through your tax bill or escrow account.
• Insurance**: Homeowners insurance protects you against damage to your property and liability for accidents on your premises. The cost of this insurance varies depending on factors such as location, property type, and coverage limits.
• Amenities and Appliances**: If you're purchasing a new home or buying off-market, consider the costs associated with amenities like pool, gym, or solar panels, which can add up quickly. Additionally, appliances like refrigerators, ovens, and dishwashers often come with their own installation fees.