When planning to own a home, many people heavily consider the mortgage payment amount and whether they can afford that payment or not in their decision-making. While this is a primary expense of owning a home, there are additional costs that you should be aware of and consider before finalizing your purchase:

• Property Taxes: You need to find out what your annual tax payment will be, divide that by 12 and save for that cost monthly. And keep in mind; taxes are just going to go up – you may even get a tax increase in the first year of owning your home, so make sure you have extra room in your budget to plan for that
• Homeowners Insurance: It costs a lot more to insure a home than it does an apartment. Even if you had renters’ insurance previously, you’re going to have to budget for homeowner’s insurance. Depending on the location of the home, it may be subject to additional required insurances like flood and fire insurance. Be sure to find out what is required for the home you want, get quotes from different insurance companies and be sure to include in your monthly budget.
• The Lawn: Whether you choose to mow the lawn yourself or hire it to be done, they will both cost you. Upkeeping the landscaping, laying down woodchips or rocks, putting up fencing – it’s all going to add up. Make sure you’re aware of this when choosing the size of your yard, considering updates, etc.
• Home Maintenance: There are a million different unexpected maintenance costs to consider – from appliance repair, roof fixes, an asphalt crack fix in the driveway, furnace repair, things come up all the time! It’s important to have room in your monthly budget to save and prepare for these fixes.

These are just a few of the costs you may incur as a homeowner. The National Federation for Credit Union Counseling has a webpage fully dedicated to helping homebuyers. Check it out here!