When a prospective home buyer begins the process of pursuing a home, there are many issues to consider. Lenders and realtors will urge you not to purchase new furniture or other home improvements before getting the keys to your home. This can effect your debt ratio and have a negative impact on your ability to close. Don’t put the cart before the horse. Here are some food for thought if you are now considering the american dream of buying a home.
Budgeting Basics for First-time Buyers Buying your first home is a lot of fun but there is more to it than meets the eye when it comes to budgeting. Most new home owners are financially savvy enough to calculate the mortgage, interest, taxes, and insurance payments; but tend to forget less obvious expenses. Here to help are a few budgeting basics for first time home buyers.
Moving Expenses: Truck rentals, time off of work and, of course, – gasoline … moving takes money whether you do it yourself or pay others to do it for you so plan accordingly. Maintenance: From lawn care to fixing a door knob, owning your own home involves maintenance. Few first time home buyers remember the expense of maintaining a yard until the neighbors start giving them dirty looks. Don’t be caught by surprise because this is one area where expenses can add up fast.
Set aside funds for a lawn service and pool maintenance, or plan to purchase the tools required to do it yourself, including lawnmowers, garden and hand tools plus other general maintenance items. Utilities & Communication: New home buyers are frequently surprised by the cost of utilities since many apartments include basics like cable, trash, or water. Set aside enough funds for deposits and the first payment for utilities, phone, cable and other necessities. Don’t forget to find out if your cell phone, cable, and other services are available in the new area — otherwise, you may be forced to break a contract to obtain services.
The joy of owning a home creates a variety of different feelings and emotions. Logic might be lost in the sense of pride of home ownership. It’s vital to have some capital for those surprises that are bound to happen. A roof leak during those heavy rains or an air conditioner that stops working as soon as triple digit weather sets in. Having a budget for first-time home buyers are critical and fundamentally sound. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home or to view local area homes for sale in Davis, California and the surrounding communities.