Buying a home is a major decision that comes with some new budgeting rules you will need to apply to fit into your monthly expenses. As a renter there were some expenses you were not responsible for, which you will now need to take into consideration as you look for a home to buy. To help you better plan for home ownership, here are some costs for you to calculate into your budget.
Once you have found a home you want to buy and you have applied for a mortgage to cover the financing of your home, you will meet with the title company or escrow attorney to sign for and close on your home purchase. But at the closing meeting you will need to pay for some of the costs out of your own pocket. These costs are closing costs and go to pay for various expenses related to settlement of the mortgage, title search, inspections, appraisal, and the county recording fees. For example, you will need to pay for a title search and title insurance to help protect you as a buyer for the home. Your title search service can provide you with a detail of their services.
Your real estate agent can get you an estimate of these costs beforehand so you know how much you will need to have in cash. As a general rule of thumb the closing costs of a home can be anywhere from two to five percent of a home's price. If coming up with the entire amount of closing costs may be a difficulty, talk to your realtor at the start of your home search. Then, as you write up an offer on a home you can ask for the seller to help you with part of the closing costs.
As a renter you also likely never had to pay for the landscaping costs for the property you lived within. For example, you didn't have to pay for the water bill for watering the landscaping, trimming and pruning any bushes or grasses, or even paying for fertilizer or pest control for the health of the trees, lawns, and shrubbery.
Now that you will be the owner of a piece of real estate you will need to plan for maintenance costs of your yard whether that involves planting new vegetation or hiring a landscaper to take care of what is already growing in the yard. As a homeowner you can also choose to do your yard care yourself, which can take several hours of your time each week. Plan to mow a lawn each week and manage the watering of your vegetation and lawn. This will keep your yard looking nice and will help you avoid getting fined by your city for neglecting your yard if there is any yard enforcement regulations in place. Check into the city regulations where your home is located to find out any ordinances about the type of landscaping you are required to have in your yard and any rules about keeping your lawn trimmed and watered.