It’s costly to buy a home in Reno Nevada. It’s the biggest financial transaction in our lives for most of us. Although most people understand the main financial components of the purchase of a home-for example, the purchase price and some closing costs-there are still more costs that remain “hidden. Here are some hidden costs when buying a home in Reno Nevada.
1. Property Taxes and Insurance
You know you’ll have to pay a monthly mortgage, but that payment is likely to be more and larger than you expected. A monthly mortgage calculator will only tell you what your payment of principal and interest will be every month. But the payment usually includes property taxes and home insurance, which can add a lot to the monthly payment. When you use a buyers agent to buy a house in Reno Nevada, your Real Estate Agent can help you get a good understanding of these hidden cost when buying a home in Reno Nevada. (Call 775-525-0980 for more information.)
2. Mortgage Insurance
If your down payment is less than 20 percent of the purchase price, you may be in for another surprise. If so, you’ll probably have to pay for mortgage insurance-because lenders consider you a greater risk in this case. Mortgage insurance usually runs between 0.05 percent and 1 percent of the cost of your loan, which you pay with the mortgage payment every month.
3. Closing Costs
Yes, when buying a home in Reno, Nevada, we all know about closing costs, but what many people don’t know is how many costs are included and how high the total can be. Closing costs generally run about 2% to 5% of the purchase price. This means, for example, you can expect to pay $ 6,000-$15,000 for a $ 300,000 home in closing costs. However, Nevada’s real surprise in buying a home in Reno lies in the large number of things included in the closing costs, such as:
- Title fees
- Escrow fees
- Prorated interest
- Attorney fees
- Loan Officer /Lender fees
Do not be turned off by the cost of closing a house. When you use me as your Real Estate Buyers agent, I will mitigate and help you lower the closing cost associated with buying a house in the Reno, Nevada Area.
4. Maintenance and Repairs
A often overlooked hidden costs of buying a home in Reno Nevada is to cover emergency repairs and/or maintenance shortly after the sale. No matter how thorough the inspection, there are many things that can and go wrong. So you have to plan expenses such as replacing the air conditioning unit in mid-July. it is a good rule of thumb to put away money for maintenance and repairs. You never know when a emergency will arise….which lead to the next hidden cost.
5. Emergency Funds
Your need to have an emergency fund for things that go wrong during the buying process is another hidden cost. During the process, a number of things can happen, and the solution is usually a more cash infusion. Say the appraisal is too low and, as a result, the loan-to value requirement for your lender are not met. You’ll probably have to come up with a larger down payment in order to get a mortgage and buy that home you really want.
6. Moving Costs
You know that you have to pay a moving company for loading, transporting and unloading at least your larger items such as furniture and appliances. That expense can be hundreds of dollars, perhaps even thousands. But all your moving costs are far from that. All smaller supplies and needs, such as boxes, packaging materials, tape, labels, cleaning supplies and eating out, must also be included. You may be surprised by the total cost.
How to Deal with Hidden Costs
When buying a home in Reno Nevada, the best way to prepare for these hidden costs is to use a qualified local real estate agent. A good agent can help you avoid some costs and find ways to meet others. There are really too many contingencies for someone to try it alone.