Purchasing a new home is a milestone worth celebrating. It comes with so many great benefits and a lot to get excited about. Still, there are some challenges to the process to keep in mind.

One major aspect to prepare for and consider as you move into first-time home ownership is managing your finances and planning for additional costs that may not always be obvious.

Here are some things to remember to budget for in your first year of homeownership. 

One–Time and Initial Costs

There are some additional costs that come with buying a new property and moving in. One such category is your closing costs. You should also remember to include the one-time moving fees as well as any immediate purchases or upgrades you might need, like furniture, appliances, any fixed windows, or paint. 

Annual Home Maintenance

You'll want to make sure you have set some money aside for ongoing regular home maintenance. This could include HVAC servicing, landscaping, gutter cleaning, and lawn or pool maintenance. It's important to account for at least 1 to 3 percent of your new home's value for these kinds of non-emergency, ongoing maintenance needs. 

Your Fixed Monthly Costs

After the sale, don't forget that you'll still have some recurring bills. Include your monthly mortgage payment (principal and interest), along with your property taxes, utilities, and homeowner insurance. Your property taxes may be included in your mortgage payment, but if not, make sure to set it aside for an annual payment. 

Contingency Fund for Unexpected Repairs

If the heating goes out or the roof starts to leak, you should be sure to have funds set aside, ready to take care of things if needed. Your emergency fund should be enough to cover unexpected situations,  like if appliances stop working or you need to replace a window. You may want to review these costs regularly to ensure they are adequate to the realities of your home and adjust for changing needs. 

While your first new home is a great achievement and something worth celebrating, the work doesn't stop at the time of the sale. You still have to ensure you've budgeted correctly and adjust accordingly for some of the home-related payments you will have to make over the year. From closing and moving fees to maintenance and repairs, make sure your finances are in order before you purchase so you don't come up against surprises a few months into your new home purchase.

Courtney Edgar is a lifestyle journalist and copywriter based in Montreal. Her work has been published in HuffPost, Pop Sugar, Atlas Obscura, Explore Mag, and more.