Owning your own home instead of renting may have plenty of advantages, but it comes with a lot of unexpected costs that can catch new homeowners off-guard. Let’s take a look at some of these expenses so that you can learn how to manage them when you are finally ready to own your own home.
Property taxes aren’t exactly an unexpected cost of homeownership, but they can still take some homeowners by surprise if they don’t budget for them. Depending on where you live and the value of your home, you might need to pay as much as $1,000 extra per month in taxes.
Like property taxes, homeowner’s insurance isn’t exactly an unexpected expense, but it can still take some new homeowners by surprise. Many lenders and mortgage companies require you to have insurance before you can be approved for the loan, so factor this into your overall budget when you go house shopping. Keep in mind that almost no policy will cover everything that could happen to your home, so familiarize yourself with different kinds of insurance and be sure to read up on the home warranty policy in California when you get the chance.
Homeowners’ Association Fees
If you happen to buy a home within a homeowners’ association (HOA), you will have to pay regular fees. These fees can be either monthly or quarterly and will cover things such as garbage collection and other services that affect the entire neighborhood. Your HOA might also charge special fees if you want to complete a special project on your home such as an addition or any significant landscaping.
Basic Upkeep – A Home Warranty Policy in California Can Help Here
Finally, owning your own home means providing basic upkeep. This is one of the biggest headaches of homeownership, one that you probably didn’t have to think about if you’ve been living in a rental property. Lawncare and landscaping require special tools and equipment, while damage to your property will need to be repaired largely at your own expense. Refrigerators, washing machines, and other appliances that can break down will also need to be repaired. An appliance protection plan in California can make covered repairs faster, more affordable, and easier for you. Once you’ve determined that your repair is covered by your policy it’s as simple as calling your home warranty company.
Best Home Warranty in California and Nevada
Owning your own home can indeed be expensive, and not just because you have to make a large down payment and pay a mortgage every month. There is a lot to think about when creating your budget as a homeowner, but that’s where HomeGuard HomeWarranty can help you. Our home warranties can help cover the costs of many inconveniences of home ownership, explore our sample contracts today to understand what is covered. To learn more about how a home warranty in California can help you, contact our office today.