Buying a Home within Your Budget

So, you’re buying your first home and feel that your finances are in the right place to do so.  You’ve found a home you would like to make an offer on and feel that it’s in your budget.  This article highlights some of the commonly overlooked details in a home-buying budget.

There are many costs that go along with homeownership which many people don’t take into account.  Using a mortgage calculator is a great starting point to determine the price range that you can afford.  You need to evaluate what size of a down payment you can afford to make.  You also need to prepare for a home inspection which is typically a few hundred dollars.  On top of that you will have closing costs which include an appraisal, loan and lender fees, as well as the cost of moving. 

There are also other costs that may be delayed until the future, but should be considered in advance.  For example, there are often homeowners-association fees which can include monthly bills.  Two of the most commonly forgotten expenses are maintenance and utility bills.  Many people don’t realize that owning a home can significantly increase their electric and gas bills.        

The best option is to find a home that fits reasonably into your budget and requires a sensible down-payment.  Also, make sure to calculate what your monthly house expenses will be to see if that will work in allowing you to maintain your current lifestyle.  It’s also smart to have extra money in your savings account for emergencies and unpredictable incidents, such as repairs.