All homesteaders bear the costs of this lifestyle gladly as they know that they are living truly independently and on their own terms but sometimes they do not consider the hidden costs. Of course, in order to do this, most people would consider it essential to own their own home first. But if you are serious about the homesteading life, this need not be a prerequisite, especially in the fairly prohibitive economic climate of today. But you must be aware of the hidden costs of buying a home first.
Homesteading is a 24/7 endeavor. It is a great deal of hard work, it requires your undivided attention and requires a very particular set of skills from the ability to cook nutritious meals to the ability to grow your own crops and even manufacture your own toiletries and beauty products.
The cost of buying a house is enormous enough in itself, but the mountain of hidden costs means that if you put off your homesteading activities until you own your own property, you may find yourself waiting years or even decades before you can begin. Here are just a few examples to help you before you buy a home…
3 Hidden Costs of Buying Your Own Home
Home inspections and surveys
Itis a great feeling when your offer is accepted on a home. But this is usually the starting point for the expenses coming your way. First of all, your lender will likely require a lengthy home inspection. Depending on the age, size, and condition of the home they may wish to check the condition of the sewer drain under the property. At the very least they will want to check for termites or anything else that can compromise the building’s structure.
They will likely also want to carry out a land survey. If I were you, I would save costs by finding a trustworthy land surveyor near me rather than using your lender’s choice of a surveyor. This will enable you to find out exactly where the boundaries of your land lie.
Even after your home has been inspected the lender and realtors are not done with you yet. Expect to pay 2-5% of the final sale price on the following fees;
- Lender fees- The administrative cost of money transfers and credit reports
- Title fees– Government filing fees or notary fees required in signing the deed over to you.
- Escrow fees- You may be required to pay some of your property taxes and insurance upfront in an escrow account.
Tax and Insurance
You have likely already used a mortgage calculator to figure out what your monthly mortgage payments will be including interest. Nonetheless, these do not figure in the inevitable property taxes and insurance. And these can all add up.
You will likely want building and content insurance for your home. Many lenders will also require you to purchase mortgage insurance if your down payment is less than 20%. This protects the lender’s interests if your ability to pay your mortgage is compromised.
In conclusion; do not rush into buying a property in a bid for independence. No matter what your current lifestyle or circumstances you should allow yourself to incorporate elements of homesteading when and how you can and view every opportunity to do so as a victory.
Do you know of other hidden costs related to buying a home? Please share your tips and suggestions in the comment box below to help others who may need some guidance before buying their first home. Every bit of information one receives can assist someone with making a researched and educated decision in the home buying process.