First-Time Katy Homeowners: Do Not Be Shocked By Unexpected Costs
Many people think that becoming Katy homeowners is going to help them financially. There will no longer be expensive rent to worry about and buying a house is cheaper than renting anyway. While the tradeoff in doing away with paying rent and starting to pay a mortgage is a good one, it can still surprise many people that there are many hidden costs associated with being Katy homeowners.
Costs After the Sale
Many people assume that after closing a sale there will be no more fees or payments until the mortgage payment is due. Besides closing costs, insurance needs to be paid. These costs can vary greatly depending on the Katy house. Do a little research before deciding on a certain house. Never allow the insurance cost to be an unwanted surprise.
Some Katy homeowners leave behind appliances. However, many do not unless it is specified in the final offer. Once the house is sold many people find themselves without vital appliances like a fridge or a stove. While these are a much smaller cost than a Katy house, not many people have thousands of dollars tucked away after paying a large down-payment on a house.
Inspection
An inspection does cost the buyer money. In the long run, it can really save them money as well. Getting an inspection of a house before finalizing a sale can help to avoid any unwanted repair costs. If any major problems are found a buyer can choose to walk away from a house that will end up being a bad investment.
Luxury Costs
Some people do not consider luxury costs. Once their budget is set and the Katy house is bought there are homeowners that find they forgot to budget items that are not necessities.
Does the family want cable or internet? Is Sunday night the day everyone goes to a restaurant for dinner? If these costs were not factored in they may be something that cannot be bought until finances are more stable.
Utilities
The cost of utilities can be much higher than expected. Always ask the current owners about what their costs were on utilities. Even if a person uses much less power or electricity than a previous owner this will give them a general idea of what to budget for.
Rainy Day Fund
Always plan for a rainy day fund. Have at least six months’ income in a savings account to ensure there will be no problems making payments on the house and utilities while still having money to eat. If something unexpected happens like losing a job this money in savings can help ensure the Katy house does not go into foreclosure.
This can also help build a cushion for those unexpected repairs. If a tree suddenly falls on the roof there is a lot of repairs that will need to be done. The tree will need to be removed, the roof will need to be repaired, and the family will likely need to stay at a hotel until everything is fixed. All of this will add up quickly.
To move into Katy home ownership, there are many costs to consider. Many are enticed by the idea of living without a landlord and rent-free. While money will no longer be going towards rent, that money will quickly be spent on mortgage payments, house insurance, and other unexpected costs. To truly be prepared to purchase a Katy house plan for the unexpected.