Budget for the Extras when You’re Buying a Home

Buying a home is probably going to be the largest single purchase you will ever make. Sticking to your budget is important so you don’t find yourself financially overcommitted. You need to be aware of the extra costs involved in buying a house, over and above the purchase price, and the ongoing expenses, such as home insurance.

Upfront costs you can expect to pay are the legal fees and taxes that are part of any transfer of property. There are contracts to be drawn up for the exchange of title, and property taxes. These are relatively standard and your real estate agent should be able to give you a rough idea the amounts.

You should get a builder’s inspection. It is important to know that the house is structurally sound and you’re not inheriting any potentially costly problems. You might need to budget for a few builders’ reports in case you end up looking at a few different houses. There may also be local government taxes or building management fees if you are looking at condos.

Where you buy in New Jersey and what you buy tends to determine the price range. However, these factors, among others, can also determine the cost of your home insurance. You can always get a few estimated quotes before you sign any final contracts to make sure you’ll be able to manage the premiums.

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