How to own your home (without it owning you)-Part 4

Part 4 of 4 part series

You’ve saved up your money, you’ve found the perfect neighborhood, and you can actually afford to make the monthly payments without being stressed. It’s time to buy, right? Not quite…

Just because you can afford the loan doesn’t always mean you have afford the house.

For new home owners, there are a lot of unknown expenses that greatly impact the monthly budget. From insurance and taxes, to utilities, to general home maintenance…owning a home is a costly endeavor.

Before you make the offer and sign the papers, it’s important to do a thorough analysis of the cost to actually own and maintain the property. How much is the electric bill, especially during peak seasons? Is there gas or propane in addition to electricity that requires a bulk purchase?

Be sure you know the previous year’s tax bill and get multiple quotes on homeowner’s insurance. And my personal recommendation is to avoid putting them in the escrow if at all possible. You’re smart and wise and have a budget – handle those expenses on your own if the mortgage company will allow it.

Finally, understand what repairs may be upcoming and how much they will cost. And be sure you can set aside money each month for unexpected repairs or maintenance to avoid hitting the emergency fund as well as upend your budget. I recommend around $1,000 set aside as a sinking fund for these expenses.

If you are confident you can make the monthly payment, keep the lights on and water running, keep your insurance and tax payments up-to-date, and not be surprised by home repairs….then you’re ready to make your offer.

Following these steps will help you make a wise investment that is a blessing to your family.

If you’re ready to make the jump, but need some personal advice for your situation, schedule a call and we can walk through your plan together. I’m here to help and I want the very best for you!