Home buying involves a lot of number crunching. Don't forget home insurance, along with these additional expenses.
Are you about to be a first-time homeowner? If that's the case, then you're likely saving money, perfecting your credit score, and pinpointing your favorite neighborhoods. Many future homeowners make the mistake of saving up enough money solely for the home itself. Unfortunately, this is not the only expense you'll incur.
Here are some figures that you'll need to add to your expenditure list.
Interest rates on mortgages.
When shopping for a home loan, homeowners should factor in the ever-fluctuating interest rate. The one perfect difference between a 4.5 percent and 5.5 percent interest rate might not seem like a lot, but it could add up to more than $30,000 over the life of a 30-year, $300,000 loan.
Homeowners associations.
If you're moving into a home where a swimming pool, fitness rooms, and security guards are all included, you may find yourself having to pay homeowners association fees. Forgetting about these costs is an easy mistake to make. Always ask for details of what the dues cover and what is expected of community members in return. It's better to find out sooner rather than later so that you don't face a negative surprise.
Homeowners insurance.
Moving into a new place will require a certain level of protection from most lenders or banks. Homeowners insurance is designed to protect your finances from taking a hit when a disaster happens. Listed perils may be fire, theft, vandalism, water damage, and liability expenses. Bear in mind that it does cover structures and possessions, but not the cost to fix the item that caused the damages.
The right
homeowners insurance coverage shouldn't be a task you have to worry about.
Contact Little & Sons Insurance Services today to get your coverage. We serve Banning, Beaumont, Calimesa, Redlands, and the surrounding California area and can help you protect yourself against the risks your home faces.
