Most mortgages require an escrow account to pay the property taxes and insurance when they are due. Generally, the lender will require one to three months of taxes and one month of insurance so they can be paid before the actual due date.
First-time buyers should be aware that they'll need this amount of funds available to purchase a home. Unlike tenants who are not responsible for repairs, homeowners are, and it is necessary to be able to pay for them when they're needed.
Newer homes will need less repairs and older homes probably, more. At some point, components like the furnace, air-conditioner and appliances will need to be replaced which could crush a homeowner's budget if they are not expecting them.
Homeowners should expect between one and four percent of the value of the home in annual repairs. The age and condition of the home and whether some of the items have been replaced will help assess the anticipated expenditures.
Another way to handle the risk of unexpected repair expenses would be to purchase a home warranty. For $500 -700 a year, repairs and sometimes, replacements will be handled by the protection plan.
Call me at 208.946.7816 for a list of trusted protection plans available in our area.