Unexpected first-time homebuyers costs in Mississippi

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Buying a home for the first time is a very exciting thing. Finding a house you fall in love with or a property that has a chance to be remodeled the way you want it is amazing. But, there are a lot of first-time homebuyers costs in Mississippi that you should be aware of. Knowing them in advance will make it so much easier to make a budget. And to save up for it. You probably already know some of the things you need to pay for when buying a house. Still, some hidden costs don’t cross your mind. Having no previous experience in buying a home just means that you should research those costs. And once you settle for a home you can pick the best Mississippi moving company to help you with moving there.

One of the first-time homebuyers costs in Mississippi is the down payment

Your down payment is going to be the first big payment you make towards buying a property. This is calculated as a percentage of a house purchase price. Usually, people will put around 20% as their down payment, but it doesn’t have to be this much. You can still buy a house with a 10% down payment, it just loses some benefits. If you do decide to make a lower down payment, you might have to pay for PMI or private mortgage insurance. This cost will be added to your monthly costs and bears no real benefits to you.

Also, making a bigger down payment at the beginning will make your monthly installments lower. So, you can buy a house with a lower down payment, but it might be smarter to save up more before actually buying. This way you will ensure that it will be easier to pay in years to come. After you have some savings with you, you can contact the seller and residential movers as you will be ready to move to your new home.

first-time homebuyer counting costs
People usually put 20% down payment, but you can put less

At the end of the process, you need to pay the closing costs

As with the down payment, once you secure your property, you will need to pay the closing costs. This is also one of the important first-time homebuyers costs in Mississippi. What these are are actually fees to pay to your lender for the original loan you took. Some specific closing costs may vary depending on where you live, so be sure to do your research. Also, if all this sounds like too much and makes you stressed, you can ask for help. There are government-backed programs that will help you both with your down payment, and your closing costs.

What are some of the things that closing costs pay for? These are everything from title insurance to different inspections you need beforehand. But it is not just the state you are moving to that impacts these costs. So, you might be hiring movers Jackson MS to help you relocate here, but the location is not the only thing you should take note of. Closing costs also vary based on the type and quantity of the load you took out. After all, this is accounted for, you can count on paying from 2% to 6% of your loan for the closing costs.

woman and man shaking hands
Closing costs vary depending on several factors

Getting a mortgage to help with the first-time homebuyers costs in Mississippi

If you have never had to get a mortgage, this might seem overwhelming. But, it is quite important to talk about this while talking about first-time homebuyers costs in Mississippi. Getting the mortgage to buy your first home will help you out. You won’t have to spend a lot more years saving. But, always learn about mortgages from the professionals that will explain and answer all of your questions. This is the only way you can actually be sure that you know all the costs beforehand. Typically, the mortgage rate that you will pay monthly is calculated based on a few factors

  • amount of money you borrow
  • how long is the loan term 
  • what interest rate you are being charged

It is quite clear, that the more money you borrow for buying a house, the more you will need to pay back. But, the longer the loan term is, the money might become more manageable. If it stretches for a longer period, you will pay less monthly. Still, this doesn’t mean that you will pay less. The longer you pay, even if it’s more manageable, the interest will be bigger, and you will end up paying more in total. Ask around about different options and different interest rates you can get, and get the best fit for your needs.

a group learning about first-time homebuyers costs in Mississippi
Look into different interest rates you can get for your mortgage

Home insurance for first time homebuyers in Mississippi

When you are buying a home, you want to keep it protected, as with anything of value. So, how do you choose the best home insurance? If you are taking a mortgage out to help you with the first-time homebuyers costs in Mississippi, you will need to get insurance. If you are paying with cash, you won’t have to, but it is still highly advised. You should aim to protect yourself and your house in the best way you can, as this will make you spend less to nothing if something happens. As there are different kinds of home insurance, make sure you do your research well. You can do it on your own, or call someone with experience that will explain it to you. The same goes with moving insurance once you start relocating. Ask your movers Tupelo MS based on different options you can have.

Also, try searching for different ways to get insurance, as sometimes you might lower the costs and save some money. Look into the options of buying it online, versus in person, the price can sometimes change. Also, premium policies can be more expansive, but in the long run, might be better. This will depend of course on where you live as well. If it is an area with a lot of earthquakes and floods, for example, a premium policy will save you a lot of money. Some people will say that it’s best if you take a replacement cost policy. This plan works by replacing any items that get stolen, instead of paying a lower value.

What are property taxes and how do they affect first-time homebuyers costs in Mississippi and other states?

Something that you don’t know about homeowners’ costs if you are a first-time buyer is property taxes. Each homeowner needs to pay these. And they will vary a lot. So, the best way to prepare yourself for these is if you talk to people from the same area you are moving to. But not just that. Their property should be of a similar value as yours. Property taxes don’t depend only on the state you are buying a home in. They are different based on the city, neighborhood, and the value of your property. The more your property is worth, the more tax you will be paying. These taxes are paid to your local government, and they are used for fixing roads, public schools, and similar things.

Your mortgage company will decide how you pay these. They can actually make an escrow account for you and charge your taxes monthly. If this is the way, they will simply add a monthly charge to your loan cost and then transfer the amount to the escrow account. The money will stay in that account until the tax season comes. A lot of people prefer this way, as it is beneficial for both sides. You can be paying less and not worry about paying a large amount once a year. Instead, you will be paying monthly increments, and be sure that your taxes are going to be paid without worry.

beige house with a nice lawn
Property taxes will depend on the neighborhood and the value of your home

Homeowner’s Association Fees

Another thing you can look into are fees that you need to pay for HOA. Not all cities and not all neighborhoods have these associations, but some do. You can decide not to be a part of HOA, therefore you won’t have to pay their quote. These associations typically get paid monthly or sometimes yearly, with the price depending on where you live. They use the money for upkeeping different amenities around the neighborhood. You can look into them before you move to a certain neighborhood. 

How much should you save for the moving costs?

Another thing that will cost you after you buy a house is the moving costs. When making a relocation budget, you should know some things about your relocation. For example, if a moving company is helping you with a local move, they will usually charge hourly. Let us remind you that local moves are usually only below 50 miles from your old home. They charge it hourly as the distance can be low but there might be a lot of work to finish. Contrary to that, Mississippi long distance movers will take some other factors into the account. The two most important factors are the distance you are moving and the weight of the load you move. The further away from the previous house, you go, the more it is going to cost. Also, interstate moves are probably going to be pricier as well.

Another factor that impacts the price of relocation is how much weight the load has. More stuff you are transporting will cost more. It might be necessary to have more movers and a bigger truck. Some of the special items like piano for example will add to the cost as well. However, Senatobia MS movers will always offer you a free moving quote so you can get an idea of your costs. Simply be in contact with the company you are hiring and they will answer all of your questions.

professional mover holding a plant and a box
Be sure to calculate your relocation budget as well to see the objective picture of first-time homebuyers costs in Mississippi.


How much will the maintenance cost for first-time homebuyers costs in Mississippi?

Now that you have finished everything and bought your first home, what costs are waiting for you next? We already talked about moving costs. Unfortunately, it doesn’t end with buying and moving to your new home. You also need to have some money saved for maintaining your house. There is something called the 1% rule, where you can calculate to spend 1% of your home value yearly for upkeep. But, this number can of course vary from time to time. Things that are included in some general home maintenance are cleaning the home, keeping the lawn, and cleaning and maintaining the yard. Depending on the size of the lot you have, you will need different amounts of time and money to keep everything neat. 

Something that impacts the cost of your monthly utilities but also needs to be maintained is your house’s HVAC systems. This means heating, ventilation, and air conditioning. All of these systems will keep your home cool or warm, depending on the season. As they run so much during the year, they often need to get some of the things fixed or checked. Be sure to have an approximate number of how much maintaining these can cost. You will have a lot of inspection done before you hire moving companies Hattiesburg MS offer to move you here. During these, you can also ask around about the approximate cost of HVAC maintenance.

first-time homebuyer in Mississippi mowing their lawn
Home maintenance means upkeeping your house, yard and all the systems inside.

The cost of home utilities in Mississippi

If you previously rented an apartment, no matter if you shared it with someone or lived alone, you know about utilities. But, sometimes landlords agree for you to pay only a part of the utilities. Or, you share the cost with your roommates. Home utilities can be one of those first-time homebuyers costs in Mississippi that don’t even cross your mind. But, always count them in. You should be prepared that the house is a bigger space than an apartment. It takes longer to cool and heat, and the costs of those will be higher in the end. Different states will have different utility bills. And even though buying a house and moving can be all you think about, don’t forget to let the utility companies know your new address. This is how you will ensure to pay everything on time and not accidentally skip some bills.