Transitioning from renter to homeowner means much more than simply having a place to call your own. Purchasing a home is well worth the investment, but it’s important for renters to be totally financially committed. Renters seeking to buy a home should budget not only monthly expenses, but also these overlooked costs:
Home maintenance – Unlike renters, homeowners are responsible for upkeep, including expensive projects like replacing a roof or windows.
Utility bills – Keep in mind that bills are generally higher than those for apartment dwellers, where some are often included in rent.
Closing costs – Closing costs can vary by state, so if you plan to relocate from a rental in one area to a home in another, research thoroughly while budgeting.
Home repairs – Renters typically don’t have to save for emergency repairs. As a homeowner, make sure you have funds set aside for unexpected issues.
Furniture – Furnishing an apartment is normally cheaper than furnishing several rooms in a home.
Seasonal projects – Many first-time homeowners fail to factor in seasonal projects, such as spring and summer landscaping and holiday decorating.
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