Blogging for Change

Homeownership costs more than the sale’s price

by Kim McGrigg on
8/27/2008
in Housing and Homeownership

According to an S&P study released earlier this week, home prices dropped a record 15.4% in the second quarter compared with last year. (Visit CNN.com to see which cities faired the worst.) With falling prices and a lot of inventory to choose from, you might be thinking that this is a good time to get a great deal on a new home—particularly if you don’t have a home to sell first.

Even if you are one of the lucky few who are only buying, it is important not to underestimate the true cost of homeownership. You may get a home for a good price; however, there are many additional costs that are incurred by new homeowners. There are up-front costs, including the down payment and closing costs. The other costs you may incur include realtor’s fees, property taxes, and homeowner’s insurance. The costs most people are surprised by are the little things you need to buy once you get into the house, so a realistic budget is essential.

The other thing you must consider is the cost of financing your new home. It may be wise to improve your financial standing before you buy a house; even it takes some time and effort. For homebuyers with less than perfect credit, mortgage loans are tougher to get then they were in year’s past.

To learn the steps to homeownership and find out if you are ready to buy, sign up for a first time homebuyer’s workshop.

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

Recommended Articles

Young couple standing in front of home that is for sale.
Housing Counseling & Resources
MMI offers a variety of housing counseling options. Connect with one of our trained counselors for one-on-one assistance.
Learn More
Learn more
  • Better Business Bureau A+ rating Better Business Bureau
    MMI is proud to have achieved an A+ rating from the Better Business Bureau (BBB), a nonprofit organization focused on promoting and improving marketplace trust. The BBB investigates charges of fraud against both consumers and businesses, sets standards for truthfulness in advertising, and evaluates the trustworthiness of businesses and charities, providing a score from A+ (highest) to F (lowest).
  • Financial Counseling Association of America Financial Counseling Association of America
    MMI is a proud member of the Financial Counseling Association of America (FCAA), a national association representing financial counseling companies that provide consumer credit counseling, housing counseling, student loan counseling, bankruptcy counseling, debt management, and various financial education services.
  • Trustpilot Trustpilot
    MMI is rated as “Excellent” (4.9/5) by reviewers on Trustpilot, a global, online consumer review platform dedicated to openness and transparency. Since 2007, Trustpilot has received over 116 million customer reviews for nearly 500,000 different websites and businesses. See what others are saying about the work we do.
  • Department of Housing and Urban Development - Equal Housing Opportunity Department of Housing and Urban Development
    MMI is certified by the U.S. Department of Housing and Urban Development (HUD) to provide consumer housing counseling. The mission of HUD is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD provides support services directly and through approved, local agencies like MMI.
  • Council on Accreditation Council On Accreditation
    MMI is proudly accredited by the Council on Accreditation (COA), an international, independent, nonprofit, human service accrediting organization. COA’s thorough, peer-reviewed accreditation process is designed to ensure that organizations like MMI are providing the highest standard of service and support for clients and employees alike.
  • National Foundation for Credit Counseling National Foundation for Credit Counseling
    MMI is a longstanding member of the National Foundation for Credit Counseling® (NFCC®), the nation’s largest nonprofit financial counseling organization. Founded in 1951, the NFCC’s mission is to promote financially responsible behavior and help member organizations like MMI deliver the highest-quality financial education and counseling services.