Aside from mortgage, how can I determine how much it will cost me PER YEAR to own a house?
I am not about to buy one.
I understand that buying a house takes lots and lots of research and preparing. So I am not looking for a definite answer.
I would like to know if there is a formula on the internet somewhere or a rule of thumb to help someone realize what owning a home costs.
I am looking for budget items such as: property tax, heating, cooling, water, electricity, average maintenance.
What all should one take into account? Its not all about the actual cost of the house, is it?
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February 18th, 2011 at 4:35 pm
Though the things you mention are important they are not the most important in the buying process. You would acquire this knowledge as you go through with a real estate agent or from talking to neighbors in the neighborhood.
If you have a down payment of 20% or more you would not be required to have an impound account where your taxes and insurance would be incorporated into your monthly mortgage payment.
You would also want to check out the various government backed mortgage loan programs such as FHA or VA, provided you are a veteran and qualified for a VA backed mortgage loan. FHA mortgage loans require a down payment as low 3.5%. Keep in mind that all government mortgage loans would require you to pay your taxes and insurance through the monthly mortgage payment for the life of the mortgage loan or until you refinanced the mortgage loan to a conventional mortgage.
There are many things you should do, the first thing you should do is contact a mortgage broker that does VA and FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.
He will inform you of what is necessary once you contact him.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
If you fail to purchase a house prior to the pre-approval letter expire you may reapply and be reissued another.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"