For most North Texas residents, buying a new home only happens a handful of times during their lifetime. With a home purchase likely being the biggest investment you will own, it is important to prepare in advance. Buying a home doesn’t need to be stressful, but it does require some forward planning and an understanding of the costs you will face. So what are the typical costs of buying a new home in North Texas?
The Costs to Consider When Buying a Home in North Texas
The down payment for the property will usually be the largest expense to consider. The National Association of Realtors identified the median down payment for buyers at 13%, with first-time buyers paying 7% of the house price. However, there are various mortgages offering different rates of payment that might be more suitable for your requirements.
Property taxes can come as a surprise to many first-time buyers, and even the experienced home buyer. It is important to consider that taxes are determined by the value of the home. Therefore, opting for a more expensive property will add to the overall costs. You don’t need to let property taxes get in the way of securing your dream home, but it is helpful to know what you can expect to pay.
Closing costs are the fees you pay to transfer the title of the property into your name. Examples of these costs include survey fees, credit report fees, mortgage application fees, appraisal fees and title insurance. Bankrate estimates closing costs at around 2–7% of the overall sales price, but figures will vary.
Maintenance costs can be an additional expense, depending on the condition of the property. Selling your own home first usually means you want to buy a property that is fully upgraded. However, if you buy first, you have a place to live while maintenance goes on. While these costs will vary depending on the home, having a rough budget in place will limit expenditures.
Homeowners insurance will protect you in the event of theft, weather damage, fire, lawsuits and other unexpected events. The cost of insurance is a worthwhile expense, but the fees will vary depending on the property value, building size, associated risks and other factors.
First-Time Buyers Need to Budget Before Buying
While these costs can feel overwhelming for first-time home buyers, they are manageable when you budget in advance. Decide what you can afford and let your realtor know the total cost you are willing to invest. The realtors at D&R Home Solutions can advise on the various costs involved with a move, ensuring you secure a home you love for the right price.
Get Expert Help Buying or Selling a Home
At D&R Home Solutions, our motivated realtors can help you buy or sell a home. We provide a hassle-free and supportive experience to clients in Allen, Frisco, The Colony and across North Texas. Call us at (214) 494-6222 or request a home evaluation today.
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