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6 things to add to your budget when buying a house
Getting ready to buy your first home in Colorado Springs?
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Some potential buyers don’t realize that there are many other costs involved in home ownership. If you thinking about buying your first home, make sure and get a good understanding of the other costs and put them in your budget.
Here’s a list of some potential monthly fees and expenses you’ll encounter.
(1) Insurance No lender is going let you purchase a home without insurance. This insurance typically provides basic protection against fire and theft. Many times it does not cover flood damage; flood insurance; hence you may be required to purchase if you live in a flood-prone area. Also, remember sometimes you can combine your homeowner’s insurance with your auto insurance to get a better price.
(2) Property taxes Tax rates vary in different neighborhoods in Colorado Springs, but your home is typically taxed on its assessed value, an amount equal to a portion of its appraised value. Taxes can add hundreds of dollars to your monthly payment
(3) Private Mortgage Insurance (PMI) If your down payment is less than 20 percent of the mortgage value, you may have to pay PMI, which protects the lender against your defaulting on the loan. This amount will added to your monthly payment.
(4) Home Owners Association Fees If you’re buying into a subdivision or a townhome community, you may have to pay for the monthly upkeep of common areas and other shared expenses. Some HOA fees are paid yearly and are very cheap; but there are also some than run $200 to $300.00 a month. These funds are not optional if you live in one of these communities.
(5) Utilities If you’re moving from an apartment to a home for the first time, know that the increase in square footage (not to mention water for a newly sodded or seeded yard) can have a large impact on your utility bill. Before you purchase a home, call the Colorado Springs Utilities; and they will be able to give you an average of the utility bills for the home.
(6) Maintenance Be sure you have some money in your monthly budget set aside for repairs and upkeep, whether for small do-it-yourself things like replacing light bulbs and furnace filters or the occassional serious issues that crop up from time to time. (Furances and hot water heaters don’t last forever. Either does carpet!)
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Kathy (719-287-1049) KTorline@msn.com
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