Be prepared for home costs beyond the mortgage

What’s my mortgage payment?

That’s probably your main concern as you figure out how to finance your home purchase. But make sure you consider the other costs associated with buying and maintaining your property.

Taxes

Public services like schools and infrastructure are funded by property taxes, which, depending on where you live, can add up to a significant expense. Make sure you investigate what the current owners pay and if similar homes are subject to different (cheaper) taxing entities.

Insurance

You can’t get a mortgage without homeowners’ insurance. Those insurance costs vary based on construction materials, the location of the home, the deductible amount, the types of coverage and whether the property has an alarm system.

Neighborhood dues

Is the house located in a homeowners’ association? You might benefit from amenities, such as a pool, gym, security and landscaping, but those amenities aren’t free. You may think the cost is worth it, but you need to factor this expense into your housing budget.

Keeping it warm and cool

What does it cost to heat and cool the house? A charming old property may also have enough drafts to let heat or air conditioning flow straight outside. Request past bills from the utility company or the current owner.

Updates and repairs

Does the faucet leak? Would you like new countertops and appliances in the kitchen? Remodeling and repair bills can be hefty. If the house needs a new roof, windows or flooring, make sure to take these expenses into consideration.

Your lender will help you get the best terms for your mortgage loan, but remember that homeownership involves more expenses than your loan. Make sure your mortgage doesn’t exhaust your funds. You’ll want a little extra for these expenses and others that crop up.