As home buyers, it’s easy to focus only on what you need to get to the closing table. But while you obviously need to have your finances in order if you want to successfully close a transaction, you also need to have them in order if you want to successfully transition from home buyer to homeowner. Why? Well, according to one recent analysis, the costs of homeownership are significant and extend well beyond your monthly mortgage payment. The analysis found non-mortgage expenses like home and flood insurance, repairs, maintenance, taxes, and utilities cost homeowners $21,084 per year on average. That’s a lot. Of course, a lot depends on the condition of the house you buy and where it’s located. But whatever the particulars of your situation, be ready. Many buyers overlook these costs while focusing only on the financial obligations right in front of them then find themselves overwhelmed when they’re finally moved in and the bills come due. (source)
