Buying a new home is an exciting process. In addition to all of the planning and thrill that accompanies being a first-time homebuyer, something to consider is the cost. Buying a new home, as you probably already know, can be a little intimidating. That’s why we here at Hayden Homes make it a priority to help you navigate the waters before plunging in. It is important to understand how much buying a new home really costs you, by taking into account the different expenses that factor into the process. Let’s dive in.
Financing and Your Interest Rate
When you look at the face value cost of a home – i.e. $250,000 – you’re not just paying $250,000 if you are relying on financing from a third party. That’s because when you get a home loan, you are charged interest on the money that you borrow, and your interest rate will have an impact on how much you end up paying over the course of your mortgage. And of course, you can pay off your home faster by paying a little bit extra on your loan each month. Many people do, and the savings are substantial over time!
The interest rate you get on your home loan will vary depending on the market, the lender you work with, and upon your circumstances. Here at Hayden Homes, we have a lot of good advice for people who are trying to position themselves to qualify for the best possible interest rate on a home, so please don’t hesitate to reach out (link to contact us page) and we’ll be glad to steer you in the right direction. Things like paying off your debts, establishing credit history and saving money for a down payment can really help.
Other Things that Influence How Much Your Home Really Costs
Another cost that you should take into account is the cost of property tax. Property tax depends upon the state you live in, and may also be influenced by other factors, such as the size/value of your home and location. So before you purchase or build, inquire about the property taxes so it’s something you can plan for.
When you own a home, you will also need to have homeowner’s insurance and pay for routine maintenance of your home. That can be costly if you buy an older home in need of updating. However, if your home is newer, you will most likely have significantly lower maintenance costs, which is one of the benefits of buying a new home!
Hayden Homes is Here to Help
At Hayden Homes, we know that the most challenging part of buying a home can be seeking out and acquiring a mortgage. That is why we are here to help. Together, we can help you understand the costs of homeownership especially when it comes to financing options.
Explore our website to learn more and be sure to check out our mortgage calculator to play with some numbers. Get in touch with us today! No matter your history, no matter your timeline, we help people from a variety of financial backgrounds find the homes of their dreams!