Today, I would like to go over what to expect to pay for while buying a home. People typically tend to think that when buying a home, down-payment money is all you're going to need. Wrong! Read through the rest of this blog post for what to expect.
When writing up an offer expect to have some money ready to put towards the earnest deposit. The earnest deposit tells the seller how serious of a buyer you are. If you were to withdraw your offer without any probable explanation (i.e.: inspection issues, financial issues, etc.) the seller would have the opportunity to keep your earnest money. However, if all goes well, they typically put your earnest deposit towards your closing costs and prepaids.
After the offer gets accepted, you have X amount of days to perform inspections. There are licensed inspectors that your realtor will have access to. Be sure to ask your realtor about possible inspectors to use. Inspections are not a requirement; however, they are much encouraged. Inspection costs vary. A typical inspection can be anywhere between $175-$500. This is something to definitely save up for. If something is discovered during inspections and the seller is not willing to fix it, you have the opportunity to back out of the sale. On the other hand, if you discover something after the sale a through, and the home is officially yours, you are stuck with fixing the issues.
Closing costs are something you should save up for as well! Each bank charges a different amount for closing costs. It is always a good idea to shop around for the best interest rates and closing costs amount before committing to a bank.
There is so much more to take into consideration when buying a home, but those are the main things people don't realize that you're going to pay for on top of your down-payment. It is always good to take into consideration that you will have to pay for insurance and taxes every year on a home. Depending on the type of loan and bank you go with, you will most likely escrow your payments; meaning, you will pay monthly for insurance and taxes, tied into your principle and interest payment. When looking at homes, it is important to pay attention to how much taxes are.
You can always call the city and try to get an estimate on what your water bill is going to run you. Alliant Energy has a website you can go to and find out what the average usage is going to cost you on your home as well. However, depending on where the home is located, you may need to call the company that covers energy there, to find out the average cost.
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Alliant Energy Average Usage: https://myaccount.alliantenergy.com/OUCSSPortal/faces/public/cmPropertyBudget?_afrLoop=667262370478791&_afrWindowMode=0&_afrWindowId=null#%40%3F_afrWindowId%3Dnull%26_afrLoop%3D667262370478791%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dyqsorh2sw_27