It's an exciting time to purchase your first home. While you may find out quickly how much you can borrow by getting pre-qualified for a mortgage, this doesn't necessarily mean you should spend every last penny on the purchase price of your home. You will have to take into consideration closing costs for buying the home, current repairs that need to get done right away, and even furniture costs if you are moving from a smaller residence to a new home. You will want to enjoy living in your new home, and getting a mortgage without having any cushion in your budget will make this difficult.
Remembering Closing Costs for the Home Buyer
Closing costs can run anywhere from 2 to 5% of the purchase price of your home. These are fees originating from the creation of your loan and the sale transaction of the home. Charges for underwriting the loan, surveying the property, inspecting the home, and running your credit may all be part of your closing costs. If you don't have the cash you need to pay for the closing costs, you can add these in to your mortgage and pay off the closing costs over time.
Making the Home Livable
If the home you have purchased just needs a little cleaning, consider yourself lucky. Many new home owners find that some repairs need to be done right away in order to make the home comfortable to live in. While you can negotiate immediate repairs with the seller before you purchase the property, there may be things you want changed before you move in that you will have to pay for.
Considering Repairs in the Future
Understand that even if you don't need a new roof within the next year, you should find out when the roof will need replacement in the future. Other big repairs include a new furnace, the electrical system in the home, and the plumbing. If the home uses a septic system, ask if there have been any problems or when the tank was last serviced. While you can't prepare for all future repairs, it's good to have a solid idea of what you will probably need to fix or replace within the first five years of owning a home.
Once you have your budget worked out, you will be able to enjoy your new home, knowing that you are able to afford costs that are going to come up.Share
28 September 2016
Apartment living can be a trial sometimes. Even the best apartment complexes can have problems, such as noisy neighbors. I experienced this firsthand with my newest neighbors. Between their partying and trashy existence, I was ready to go crazy. Late one night when they were being particularly noisy, I started researching my rights as a tenant. I found out I did not have to live with their inconsiderate behavior. As a public service, I decided to help others through this blog with their neighbor problems. Whether you are dealing with a landlord that will not do any repairs or bad neighbors, I can help.