BECOMING A FIRST TIME HOME BUYER

If you just bought your first home, or have been a home owner for a short period time you will notice that you run into some unexpected expenses;  things that could easily be prepared for but no one told you about. When you are just a renter in a home you are note used to paying yearly taxes on your home, but becoming a home owner that is something that will come up so being prepared for them will really keep you on track with budgeting your bills. If you have a mortgage, your lender will more than likely let you know an estimated amount of how much your taxes for you home will be each year. Your taxes typically stay the same but if for any reason your home value goes up a lot, your property taxes will also increase. Be prepared for your utilities to change as well, in some rentals you might be paying only a certain amount of utilities but when you own a home, every bill will have to be in your name. In some cases, you may have the option of shopping around for the most affordable service. A large area might have multiple internet providers or trash services. Get estimates for these bills when planning your home buying budget so you’re prepared for the future costs of maintaining a comfortable home. When you own a home you will be responsible to maintain every aspect of it, that includes roof repairs, HVAC repairs, and any upgrades to your home, including a garden in the backyard if you like those kind of DIY projects.  You may be able to do some of these tasks yourself or you might prefer to hire a professional. From power washing the siding to regularly treating the deck, you’ll need to budget for the supplies to handle it as a DIY job or the service fees to call in a pro. If you live in a neighborhood with an HOA do not forget about those fees on top of your mortgage; most Home Owner Associations range anywhere from 50$ a month to $500 a month. Looking into how much the HOA dues are in the community before you purchase your home can make a huge difference on home much you can afford in your monthly mortgage. When you become a home owner you will need to purchase Home Owners Insurance; this is a very good thing because if your home ever floods or catches on fire your insurance will come in handy. Seems like a pain at first but having this really saves your back in the long run; and yes I look at it like “would if my home never floods, that is wasted money every week” and my lender replied “but would if it does and you do not have insurance, you will have to come out of pocket for the repair costs” if you think of it that way you will run out and get insurance. Purchasing a Home Warranty on your property can also save you a lot of money; if you have one and your air conditioning unit goes out in the middle of summer, you can call them and pay a service fee which is typically under $100 and they will fix your unit and if it is unfixable they will replace it. A new HVAC unit cost anywhere up-to 5,000; when you are in the moment and purchasing your first home think about these unexpected expensive you will run into, and have them budgeted into your debt to income ratio so you can plan for your future budgeting.