Saving up to purchase your first home has been a marathon, and you are finally getting to the point where you can see the finish line. However, while you may have calculated your moving down payment costs already, there are other expenses you will likely encounter when moving from a rental into your first home. And, if you don't adequately budget for these added costs, they can really throw a monkey wrench into the process and unnecessarily stress you out.
To avoid this fate, here are four expenses you should budget for when looking at homes for sale.
1. Overlapping Mortgage and Rent Payments
What if the timing of your new home's purchase doesn't perfectly align itself with the end of your rental agreement or lease? Honestly, this is more often than not the case.
If your landlord won't agree to let you out of your lease early, then it is possible you may end up paying both a mortgage and rent payment in the same month. Since this a big chunk of change, it needs to be budgeted for. You don't want to lose out on a great house because you will need to continue paying rent for a few extra months.
2. Utility Deposits
If you aren't already an established customer of the utility companies serving your new home, then you will likely be required to make deposits to set up new service accounts. Some of these deposits can be pricey. For example, power utilities often charge a deposit that's equal to an average monthly bill in the area. Additionally, if you have a bad credit rating, then utility companies may view you as a credit risk and charge higher deposits. If you aren't prepared to shell out a few hundred dollars in deposits, then this can be really stressful during a time you should be celebrating your new home.
3. Restocking Your Pantry
If you made every effort to use up all of your cleaning supplies and eat as much food as possible so you would have fewer items to move, then you will need to start restocking your pantry back up once you move into your new home. While you can always spread the cost over time, you can still expect a few larger-than-normal shopping trips just after you move in. To lessen their impact and make your life easier, budget for pantry restocking so you can get the task done as soon as possible post-move.Share