Have you planned for ALL of the costs associated with owning a new home—especially those above and beyond your monthly mortgage payment? Often times, home buyers forget to allow for expenses that happen after they sign on the dotted line. Your lender will tell you how much you can borrow, but you should create a housing budget for yourself.
Financial lending experts recommend allowing for about 30 percent of your gross monthly income for principal, interest, homeowners insurance, and property taxes. Another good rule of thumb to follow is to annually budget about one percent of your home’s purchase price for repairs and maintenance. You may not spend this entire amount each year, but it is always smart to have a reserve when needed.
Some common home buying costs include the following:
It’s better to be house proud and not house poor. Budget for additional expenses today so you are well-prepared and your dream home doesn’t turn into a nightmare. Contact Old Dominion Realty for suggestions regarding items you may not have considered when planning your home budget.