Those looking to buy a home in Denver need to consider their total monthly cost of living before committing to anything. The six areas that every potential homeowner needs to assess are:
- The Mortgage. The monthly payment on your home loan will be the largest factor of your monthly housing costs. The loan will vary based on the principal as well as the type of mortgage you took out.
- Labor. Your new home will not cut its own grass or clean its own gutters. Lawn care and other small jobs around the house need to be budgeted into your monthly housing costs.
- Property Taxes. City and county property taxes vary in cost and how often they are billed to you. These taxes can be quite expensive depending on where you live, so do your research to determine how much you would be paying on your new home.
- Ongoing Maintenance. Projects such as painting, new appliances, and other long-term upkeep need to be included in your monthly budget. Saving little by little will ensure you have money when a big project comes up, so don’t overlook this portion of your monthly living costs.
- Utilities. The summer and winter months will result in hefty utility bills, so figure out what you can expect to pay for your utilities from month to month and figure it into your total costs.
- Insurance. You need to protect your new investment with the proper insurance, which can be quite pricey for nicer homes. Get a quote on the home you are looking to buy and add that to your monthly living costs.
By considering these six factors, you will have the necessary information to make an informed decision on whether you can actually afford a home or not. If these monthly costs of living are manageable for you, then congratulations! If not, don’t be discouraged. The long months of saving up for a house are worth the payoff.
What tips or suggestions would you give potential buyers that are looking at homes in Denver? Leave a comment to share your advice!
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