Considering being a first time homeowner - Consider all the factors
Imagining grassy lawns, picket fences and friendly neighbors? Dreaming of good schools for your kids and a comfortable home to retire in and pass on to your family? Homeownership is the hallmark of the American dream. Owning your own home can act as a 30-year savings investment plan and provide financial stability for your monthly budget and the foundation for your retirement plan. There really are a myriad of reasons why homeownership massively outweighs renting year to year.
Homeownership does also come with a few realities that dreamers like you don’t consider; which is fair! You don’t know what you don’t know quite yet. Owning your own home comes with a new list of responsibilities that you need to consider before purchasing that home and the maximum end of the amount your lender has approved you for. There are a bunch of new expenses to factor in both monthly and yearly that renters simply don’t have to deal with.
As the ink is still drying on your purchase contract you may be faced with a bunch of expenses you’ll have to dump right away into your new home. Consider the cost of having to replace a dishwasher, a leaky toilet or a bad showerhead. Don’t forget you may need to purchase your own appliances such as a refrigerator, washer, dryer or stove. For bigger repairs like a new air conditioner or a burst water heater you may want to consider purchasing a home warranty policy either through your title company at closing or through another company of your choosing.
That new home have a beautifully sparkling pool and the green lawn you were dreaming of? Well both take consistent effort to keep them as pristine as sale condition! Either plan on spending your weekends out doors or setting aside a couple hundred a month for landscapers and pool maintenance, not to mention higher monthly water bills for both.
A lot of the time when you move into that exciting new home people want to start fresh with new plates, rugs, drapes and furniture that may suit your home better than your last rental. These things will add up more quickly than you think. Rather than racking up credit cards to cover these costs, you may want to put off buying that home a couple more months than you had planned to sock away some extra cash for these move in expenses.
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