It is easy to get caught up in the excitement of buying a new home. The sad part is, most forget to consider all the financial responsibilities that come with owning a property. While you need to budget your income for the monthly mortgage payments, don’t forget the additional expenses associated with homeownership.
Maintenance and Utilities
Even if you bought a new house, note that not everything will stay strong and new forever. You will need to paint the walls, landscape your front yard and backyard, and think of the condition of your roof. Major appliances also don’t last a lifetime, they will need repairs or replacement in the future. You will also need to pay for utilities such as water, electricity, phone services, cable television, and trash removal.
Houses in planned communities have association fees every month or year. You can better prepare for this by asking about the fees before making a purchase. Mortgage specialists from Primary Residential Mortgage, Inc. suggest knowing what it covers. Some include lawn maintenance, community pool, or snow removal. Other communities, meanwhile, use the fee for administrative costs or in beautifying the neighborhood/community. It is also good to know that these fees may increase over time.
Decorations and Furniture
It is common for those who bought an expensive house to have little money on décor and furniture. Note that a house will have more personality and energy when there is the right amount of furniture pieces in every room. This is why when buying a new home, consider the number of rooms that will need furnishing. Moreover, buy only what you comfortably afford.
Buying a new house means taking a big debt. Be sure to consider your personal and lifestyle before finally making the decision. If you get tempted in buying a larger house or a getting bigger mortgage, run the numbers to know if you can actually afford it. Ask your lender about the options available for your personal financial situation.