Buying a home in Irvine for sale entails a lot more than just sending in a mortgage payment every month. First-time homebuyers can find themselves in financial straits if they are unclear on all the costs that come with buying a home.
1. Home Inspection
Before buying a home you’ll want to have it inspected to ensure you are making a sound investment. An inspection can uncover hidden mechanical or structural issues that could end up costing you tens of thousands of dollars in the long run. So while the inspection will set you back a few hundred, it’s worth it in the long run.
2. Closing Costs
These costs typically include things like lender fees, appraisal fees, processing fees, and title insurance. More importantly, closing costs average around 2 percent of the purchase price. It is possible to negotiate with the seller in an effort to share some of these costs, but keep in mind sellers also have other fees they’re required to pay as well.
3. Replacements and Repairs
There is no landlord or property manager anymore. If something breaks, you fix it. If something needs to be replaced, you replace it. One or two things might not seem like a big deal, but if you’ve just put all your cash into your down payment, replacements and repairs can strain your wallet. Keep a separate savings account specifically for home repairs.
4. Escrow Accounts
Many first-time buyers haven’t heard of escrow accounts, which are fairly standard if a buyer doesn’t have 20 percent to put down. The money in an escrow account will cover certain costs throughout the process, like private mortgage insurance premiums and homeowners insurance premiums. This can add anywhere from a few hundred to a few thousand dollars depending on the home you’re purchasing and your premiums.
On way to ensure you are prepared as possible is to work with an experienced Irvine real estate brokerage. A knowledgeable agent can show you properties that won’t break the bank and walk you through the process from start to finish. Learn more or schedule an appointment by calling (714) 454-0364 today.