Owing Your Own Property
There's a lot to love about owning your own property, but there are also a few important things to consider before committing to the purchase. No matter if you're a first time home buyer or a seasoned real estate pro, the process is usually the same. Buying new homes typically starts with looking at options, checking your credit, and testing out house prices in a mortgage calculator to see monthly payments. Beyond that, be sure to look into other important costs and responsibilities. Don’t worry, we’ve listed them out for you.
If you're a first time home buyer, this could come as a huge (and expensive) surprise if you're not aware of it upfront. You wouldn't look at new homes without gauging the yard work needed. You also should make sure you evaluate property taxes that are due each year. Some mortgage companies roll these costs into loan payments, while others allow homeowners to pay the costs themselves. Each method has advantages, but it's important to plan ahead to cover the charges if they aren't included in your mortgage payment.
Another thing that trips up many first time home buyers – homeowner's insurance. It's another major expense that goes with owning a home. As with property taxes, some mortgage companies include the cost in the mortgage, but when that doesn't happen, you have to plan for the expense. Payments for insurance may be divided into smaller monthly amounts or quarterly amounts, or be billed twice a year or annually. If you end up having a mortgage that maxes out your payment ability without adding this expense, it can make paying for new homes harder than expected.
Structural Maintenance and Repairs
Taking care of your home isn't just limited to yard work and cleaning. Components wear out and break in homes, and you're the one who must pay to get them fixed when you're the homeowner. That is why including some cushion in your budget for maintenance and repairs can help you stay on track. Repairs could be minor, like cosmetic improvements to a drab room, or they could be major, like repairing a hole in a roof after a windstorm or replacing a leaking hot water heater.
Lawn Care and Landscaping Needs
When you rent an apartment, you typically don't have to maintain the lawn — so yard work can turn into an unexpected expense for first-time homeowners. Yard maintenance means you either need to hire someone to take care it or purchase your own lawn care equipment and make time to do it yourself. You may also need to purchase trees to complete your landscaping, or pick up some shrubs and flowers to enhance the appeal. After all, if you're going to own your dream home, you might as well turn the outdoor area into a welcoming space for you and your family.
First time homeowners are often so excited about buying their new homes that they overlook some important factors in the process. Unexpected costs like homeowner's association fees and utility costs are two more things that can throw your budget out of balance. Using a mortgage calculator helps, but when you're facing unexpected expenses associated with new homes or if you need to get gear for all that yard work, turn to CreditBox for a quick solution. Learn more about how it works today to make your property owning dreams a reality tomorrow.