HOA’s, Taxes, and Mello-roos, Oh My!

I have said this before, you have found the perfect house and you are ready to make an offer.  Sometimes finding the perfect house is the easy part of the purchasing a home.  It is easy to get caught up in the square footage, flow, and floor plan, without really looking into the specifics of how much the house is going to cost you.  Sure, you have done all the calculations as to how much your monthly mortgage payment will be and have even figured in the PMI.  But, what about all the other costs that are associated with home ownership and when is a house just too much money than what you can afford?  When purchasing a home you need to look at the big picture. 

There are many additional expenses associated with home ownership and these expenses need to be included when deciding which home will work for you.  On top of the mortgage, you will need to consider how much you will pay in property taxes a year, so don't forget to ask your lender if the property taxes are included in the estimated monthly payment.  Something else to consider is whether there are special taxes assessed to the particular neighborhood the house is located, called mello-roos.  Or if the home you are thinking about buying is part of a Home Owners’ Association, there may be dues and fees assessed to the property.  What about the cost of utilities for the property or what happens when something breaks down and needs repairs?  Make sure you get one year home warranty for the unexpected surprises. The big picture can be a little scary, but with proper planning and doing your homework, you can find the home that is long term and just right for you and your wallet.