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Be Ready for These Expenses When Buying a House

Wednesday, January 11, 2023
by The Hat Team


Buying your first home is exciting. After getting approved for a mortgage loan, working with a professional Realtor and finding your dream home, it’s time to settle in and start enjoying your new digs. Then BAM!  The shock of an unexpected expense slaps you in the face. Don’t let that happen to you. Being informed about the possible expenses of being a homeowner will not make spending the money any more fun, but at least you will be prepared. 

Here are some ancillary costs of homeownership that you should be aware of:

  1. CLOSING COSTS

When closing on your mortgage you will be presented with a long list of costs: mortgage taxes, lender application fees, attorney’s fees, title insurance, recording fees and any potential real estate tax reimbursements if the seller has paid them up front. Altogether, closing costs are an average of 2 to 5 percent of the total cost of the home. They will vary from state to state.

  1. HOME MAINTENANCE

Now that you are a homeowner, you are solely responsible for the maintenance and upkeep of your property. Everything from yardwork to cleaning; pressure washing to clearing the gutters…it’s all in your hands and on your dime. Oh…and fixing things. Yeah. When the AC isn’t working or there is a leaky faucet, you will be footing the bill for repairs. This all sounds a bit overwhelming, but the key is to be prepared. Go into your home purchase knowing that you will likely be spending about 1% of the purchase price of your home on maintenance annually.

  1. PROPERTY TAXES

Property taxes vary by state and can also vary based on city, ordinance, and even specific house. You can utilize a Property Tax Calculator to get an idea of what your taxes will be when planning for your expenses.

  1. UTILITIES

If you’re coming from a rental where your utilities were included with the rent, you may not have considered how much you will need to set aside to pay for electricity, gas, water, and sewage costs. Added to internet, cable and phone bills, it can be quite a chunk of change. Planning for utility costs is crucial to making sure you can afford to live in a home of your own.

  1. HOMEOWNER’S INSURANCE

    When you get a mortgage, you must get homeowner’s insurance as well. Be sure to do your homework and shop around for the best possible price. You can get discounts for things like security systems, working from home or bundling coverage for your home with your auto insurance policy. Educate yourself on what your insurance policy covers so that you’re not left disappointed when you must pay for something you thought would be taken care of.

Don’t let these expenses scare you off from purchasing a home. Again, the key is to be aware of them going in so that you won’t be caught unawares when they come up.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: genisyscu.org, hometowninspect.com, energyathaas.wordpress.com, smt.greenwaymortgage.com

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Steps to Take Before Buying Your First Home

Wednesday, April 29, 2020
by The Hat Team


The idea of buying your first home is exciting and it would be easy to jump the gun and start looking right away.  But before you start your home search there are some steps you should take to prepare:

  • Educate Yourself

It is crucial that you understand the steps involved in buying a house before you get started in the process.Going into it blindly will only lead to confusion and frustration down the road.When you are familiar with what happens after you find your dream home, you will feel more comfortable when it comes time for home inspections, making offers, shopping for home-owners insurance etc. Homebuying Process: 7 Steps to Buying a House

  • Hire a Top-Notch Realtor

The best tip I can give a first-time home-buyer is to hire a Top Realtor.An experiencedagent like Sandra Nickel will be your go to person for advice throughout the process of finding and purchasing a home.She will provide advice on everything from loan officers to talk to, types of inspections to choose from, how much you should offer for a home and more.Being familiar with the local area, she will know about neighborhoods and houses that will suit your needs.

  • Get Pre-Approved

Before your start searching for your home it is vital that you get pre-approved for a mortgage loan.Not only will this let sellers know that you are serious about buying, it will also give you an advantage over buyers who are only pre-qualified.A pre-approval will help you get an accurate idea of what you can afford, so it will make it easier for you to determine what your budget will be. Pre-Qualified vs Pre-Approved: What's the Difference?

  • Be Prepared

Buying your first house is a new adventure.It takes time, patience and persistence. There will be many new tasks to add to what is likely an already full schedule in your life, but they will all be worth it when you are enjoying your new dream home!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: moneyunder30.com

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Starter Home - A Guide for First-Time Homebuyers

Wednesday, March 6, 2019
by The Hat Team


Purchasing your first home is a huge milestone…and not one that should be taken lightly.  It’s a big commitment and you want to make sure you get it right.  It’s important that you educate yourself before you begin the home buying process so that you can find the right property and procure the financing for it. 

Here are some things you should know as a first-time homebuyer:

  1. PEOPLE INVOLVED IN THE HOME BUYING PROCESS

Entering the home buying process for the first time might feel a little overwhelming. You will have a lot of questions, but don’t worry, there will be people who will guide you through.The first thing to do is to find an . Your Realtor will assist you in finding your starter home, making an offer, and negotiating with sellers. Another person you should meet with prior to starting your home search is a mortgage lender. Your mortgage banker will help you complete your loan application along with determining the amount you qualify for. Getting pre-approved for a mortgage is an important step that will set you on the right course for buying your first home. 3 Essential Reasons to Get a Mortgage Preapproval

  1. STARTING YOUR HOME SEARCH

I’m sure you’ve heard the saying in relation to real estate. It exists for a reason. Because location is one of the most important aspects in choosing a home.The first thing you must do when searching for your starter home is determine the area you want to live in.You should take many things into consideration when making this decision. Do you want city, suburban, or country living?What is the reputation of the school system?Are there shopping, dining and entertainment activities nearby?The answers to these questions aren’t just important for you when you’re living there, but may also have an impact on resale value. Remember, this is your starter home; not necessarily your forever home. So, you should take resale value into consideration when choosing the location. Once you’ve determined WHERE you want to look, you can create a list of what you’re looking for in a home.You may have to compromise on some things, but going into your search knowing what you want will make things less confusing. Home Buying Wish List

  1. FINANCIAL IMPLICATIONS

When buying your starter home, there may be some expenses that you didn’t anticipate.  Don’t risk being blindsided by unexpected expenses.  Do your research and make sure you know what you are getting into.  Here are some costs you may not have thought of:

  • Closing costs
  • Home inspection
  • Moving expenses
  • Setting up your new house

Remember that your Realtor and Mortgage Banker are there to answer questions you may have, so don’t hesitate to take advantage of their expertise!

If you are considering the purchase of your starter home, let Sandra Nickel and her Hat Team of professionals assist you with all your real estate needs!  Call them today at 3234-834-1500!

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First-Time Homebuyer’s Checklist: Are You Ready to Buy?

Thursday, May 3, 2018
by The Hat Team

The decision to purchase your first home is not one that should be made lightly.  It is an important, life-changing decision that should be given serious consideration.  So, before you take the plunge into searching for the prefect home, here are some questions you should ask yourself to make sure that you are ready.

- Can I afford a home?  The first step is to determine if you can afford to buy a home based on your current financial situation.   Using a Home Affordability Calculator will help you figure out how much you can afford by plugging in your income, debt and the amount of a down payment you will be able to make.   You will now have a number for the highest amount you can afford and what the monthly payment will be.

 - Is it better for me to rent or buy?  Using a Rent vs. Buy Calculator will allow you to crunch the numbers. You can enter the current amount of rent you’re paying (or how much you would be able to pay) and the zip code where you want to live. The calculator will provide a comparison of the cost of buying a home versus renting in that area.  You will also be able to see which option is more cost effective over time.

 - How long will I live here?  If you plan to stay in a home for a long time, it is generally better to buy versus rent. If you’re going to be living somewhere for a short term, renting might be the better option.  The reason is that when you buy a home you will likely have to pay closing costs which can total in the thousands of dollars.  In addition, most of your early mortgage payments go toward interest rather than paying down the principal, which is the actual amount you owe on the home.  A good rule of thumb is that home buyers should stay put for at least five years.  Otherwise, renting may be better.

 - Are you saving for retirement?  Retirement may seem a long way off to young home-buyers, but it is important to start saving early.  It’s not a good idea to neglect your retirement accounts to “save” money to put down on a house.   Consider meeting with a financial counselor who can help you find a balance in saving for retirement and saving for your first home at the same time.

 - Am I ready for the responsibility?  Owning a home is a huge responsibility.  With rentals, you can call your landlord to fix things that aren’t working in the home, but as an owner, it’s all up to you.  You need to be sure that you have the time, willingness and resources to keep up with home and yard maintenance.

Sandra Nickel and her Hat Team of professional Realtors at Homes for Sale in Montgomery AL can assist you in the process of determining if you are ready to purchase your first home.  Give them a call at 334-834-1500 and get started today!

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