Expenses to consider when buying a property

Expenses to consider when buying a property. One of the most exciting moments in life is starting the process of buying a home. It’s a long-awaited goal that requires clearing a few hurdles before reaching the finish line: securing a good job, saving up, having a solid credit history, and getting pre-approved by a mortgage lender. Pre-approval is a crucial step that involves a lender reviewing your financial situation and determining the maximum amount they would be willing to lend you for a home purchase. And when you receive that letter saying, “Dear Fulano, you have been pre-approved for a $500,000 mortgage…” — it feels like the starting line to your home search.
But hold on, don’t rush just yet. There are still some crucial steps before closing the deal. It’s important to remember that patience is key in this process. Often, we need to pay more attention to the impact that property taxes and insurance can have on our budget. These are mandatory expenses your lender will factor in before approving your mortgage.
Remember, cities rely heavily on property taxes to fund essential services like garbage collection, road maintenance, and public safety. That’s why homeowners are called “taxpayers.” Understanding this financial responsibility can help you prepare for the future. Property taxes can amount to several thousand dollars annually. For example, in a typical home in South Florida, property taxes range from $6,000 to $9,000 a year — about $500 to $750 per month. On top of that, your lender will require homeowners insurance to protect their investment, at least while you’re paying off the mortgage. This adds another $5,000 per year or around $416 monthly for an average home.
So, when you find your dream home, remember to add about $1,000 a month to the purchase price to cover property taxes and insurance.
To avoid surprises and extra costs in the home-buying process, we strongly advise that you include a Univista Insurance agent on your team in addition to your real estate agent. Their expertise will help you estimate any hidden expenses tied to your dream home, providing you with the reassurance you need. Expenses to consider when buying a property.

Call us today for a full rating!305-267-7138. You can also quote for free here.