3 tips for avoiding hidden housing costs

First-Time Homebuyer

Start your search the right way by understanding the costs of buying a new home.

Looking for a home that fits your budget? A home’s list price is only one factor.

These tips help you consider all the costs of buying a home.

1. Get started with an online calculator.

Consider this: two homes may have the same list price, but one might have significantly higher property taxes, putting it out of your reach.

A mortgage calculator can help you figure out what your total monthly payments might be—including property taxes and homeowners insurance.

2. Review your preapproval letter.

A preapproval letter helps you know how much money you’re qualified to borrow. Review your letter closely to see how additional costs like private mortgage insurance (PMI), property taxes, homeowners insurance, and HOA fees could impact your overall budget.

3. Plan ahead for home repairs.

It’s a certain bet that any home you buy will eventually need repairs. The challenge is in predicting when and how much it’ll cost. One popular rule of thumb is to set aside 1% of the home’s purchase price each year for future repairs.

So for a $300,000 home, you’d set aside $3,000 annually, or $250 each month. If you buy an older home, you may need to boost this repair budget even higher.

Buy your home with confidence.

Still feel confident about your homebuying budget now that you have all the numbers? Great. Talk with a Truist Mortgage expert to guide you through the homebuying process.