What are the Additional Expenses that A Homeowner has to bear?

For all first time homeowners, selecting a house, deciding the budget and finally closing the deal, can prove to be a challenging process. Many homeowners also opine that the entire process of purchasing a house has numerous legal hassles, which can prove to be both physically and mentally taxing. Moreover, banks and financial institutions, offering different types of mortgages, make it difficult for a home buyer to choose a particular mortgage plan. The plan that you choose must prove to be lucrative and also be strictly within your budgetary constraints.

Steve Liefschultz Chief Executive Officer (CEO) of Equity Bank Minnetonka, Minneapolis believes that homeowners must first evaluate all aspects of the transaction, while purchasing a house. Moreover, as a home buyer, you must take into consideration all of the additional expenses that you will incur on purchasing the house. According to Liefschultz some of the expenses that you must take into consideration are as follows:

  • Home insurance: All States in the USA have their own particular home insurance rates. The insurance rates are decided based on the condition and location of the property. Say for instance, if you have purchased an old property that has outdated wiring then the insurance premium to be paid in lieu of ‘home insurance’, will be higher. Similarly, if you have purchased a property in a zone that is prone to earthquakes, tornadoes or other similar natural disasters, then also the home insurance premium will be higher. However, the point that you must consider is that the insurance payable will not only protect your property, but the surrounding properties as well.
  • Adding features to your home: If you are looking to add extra features to your house such as a patio or an extra room, then you must be prepared to pay for the additional expenses. Although, the patio or a new flooring will definitely enhance the appearance and appeal of your home, yet the expenses will have to be borne entirely by you. Given the present economic condition, most financial institutions are reluctant to give home renovation loans. Thus, if you are looking to make any permanent changes on the property, then you must be prepared to bear the expenses.
  • Property tax: The tax levied on a particular property will depend on a number of things, such as location of the property, total acreage and also the particular State in which you are purchasing the property. Usually, estimating the property tax is easy as you can find out all details regarding the tax amount payable you checking out the real estate listing. Thus, if you do not want to be shocked regarding the property tax amount, then it is best that you find out all details regarding the taxes payable on a particular house, before you proceed with the transaction.

Hence,Steve Liefschultz strongly advices all his clients that one should first evaluate all aspects of the particular property and the your budgetary constraints, before you proceed with the transactions.