So, you've saved your down payment, been accepted for a mortgage, and the hunt is on for a new house. However, affording your mortgage is only part of the cost of owning a home. Becoming a homeowner means you are responsible for much more than making monthly mortgage repayments. It is thought that homeowners can pay up to $1,200 extra per month on top of their mortgage, which is quite the lump sum you need to find; it is not ideal if you are already maxed out paying for your mortgage.

With first-time buyers being more likely to buy for the maximum price they can afford, avoiding doing this and knowing the reason why it's not a good idea might serve you well in the long run.

This post will look at the hidden or not-so-hidden costs of homeownership you need to consider before making an offer and finding yourself struggling to cover the bills.

Property Taxes

Every homeowner must pay property taxes set by their local township, county, or state. While the average national rate for property tax is 1.1% of the property value, the more expensive the home, the more taxes you will be required to pay as the relevant figure will be more; the exact amount can vary depending on your local area or state. For example, Alabama is 0.4% while Jersey is 2.2%.

This means you could be looking at upwards of $ 5,000 extra on top of your monthly mortgage payment. That being said, while you can't dictate how much you pay in property taxes, you can lower your property tax payments in other ways. So bear this in mind before you sign on the dotted line and factor your property tax into your monthly budget. Even if you pay bi-annually, annually, or monthly, it still needs to be factored in.

Homeowners Insurance

Most mortgage lenders will require that you have some level of homeowners insurance; usually, the lower your downpayment, the more coverage you will be required to have, but this isn't a strict rule. However, having insurance is something that you will need to factor into your budget when it comes to the cost of home ownership.

Much like any other insurance coverage you take out, there will be a list of variables that will influence the price of your policy, including your area, the home's value, your credit score, and so on.

As this is a required payment, it will be included within your mortgage repayment, and while this isn't so much of a hidden cost for some people, most buyers know this is coming, the hidden expense is in what your homeowner's insurance doesn't cover.

The most surprising thing not covered by your homeowner's insurance is that it generally does not cover "acts of god," so weather-related damages are covered, and you will be required to take out additional insurance to cover you for any damage if you live in an area prone to extreme weather events.

Repairs

Unlike renting, repairs are solely your responsibility, and you will need to ensure you have the funds available for any damage or repairs that crop up. Be it electrics, plumbing, a new roof, HVAC repairs, or anything else that goes wrong or needs updating, replacing, or servicing during your time living in the property.

While you have likely accounted for your general day-to-day bills, you need to be confident that significant repairs can be carried out. Let's take a new roof, for example; a complete roof replacement can run anywhere from $6,000 to $80,000 depending on your roof, choice of materials, and the surface area to be replaced. The average homeowner can expect to pay around $12,000. Can you afford this, or is this something you will likely need to apply for credit to cover?

It's a good idea to put money into savings to cover maintenance and home repairs in the event something significant needs attention, be it a new roof, foundation, and structural repairs or needing a furnace repair service using experts like Hooley Heating and Air Conditioning.

Experts suggest around 1% of the property's asset value should be in your savings fund for maintenance and repairs. So if your home is worth $200,000, then you need $2,000 squirreled away for this cause. To save $2,000 per year, you will need to save $167 per month to hit your target.

However, for home upgrades and major replacements such as the roof or your whole HVAC system, the cost will likely exceed this amount, so it's a good idea to have an additional savings fund to help you boost the repair fund. Exactly how much you want to save towards this is really up to you, but if you don't use all of your savings funds for your annual repair and maintenance budget, you can roll this over to help you afford the costs. Going with the above example, you could round up the $166 to $200 to help you boost the fund faster.

Fees

If you are moving into a HOA or a condo, you should be aware there are fees associated with this. The exact amount of fees you need to pay will be stated upfront. However, what you might not realize is the cost of meeting the standards set out by the HOA or the condo board to keep your home in line with standards and regulations.

The fees will typically cover things like garbage removal, snow plowing, and health and safety. But extra expenses would include paying for a new security system or revamping communal areas and so on, landing you with an unexpected bill. This could also occur if you sustain property damage, need to replace a fence, paint the exterior of your building, and so on to maintain standards, so having funds on hand to do the work required as soon as possible is going to be something you are confident you can handle moving forward.

As you can see, there is a lot involved in owning your property, and the mortgage is just one part of home ownership. Know what you are getting into before moving ahead and purchasing your oh so you don't get caught out by unexpected costs.