Whether you’re trading up to a larger home or looking to buy for the very first time, in order to accurately calculate what you can afford, you need to factor in the extra costs – on top of the purchase price – that come along with the purchase of a home. No one wants to be surprised with an unwanted financial nightmare on closing day because they were not properly informed of extra fees, such as taxes and other additional costs.
Some of these costs represent an ongoing monthly or yearly commitment. Others are one-time fixed payments. Not all extra costs will apply in every situation, but knowledge is power. It’s better to be aware of all possible extra charges ahead of time so you can budget properly.
Buying a home is a major milestone. Whether it’s your first, second, or tenth home, a certain measure of stress, excitement, and a boatload of details come with the territory, so the last thing you need are unbudgeted financial obligations in the hours before you take possession of your new home.