Budgeting Basics for First-time Buyers

By
Real Estate Agent with Tunmire Realty

I had a little difficulty with today's topic. Then it occured to me that most buyers are more concerned with coming up with their down payment and closing costs, but forget that they have to live in the home afterwards. So here are some reminders of what you may need to budget for after you close on that dream home!

Buying your first home is a lot of fun but there is more to it than meets the eye when it comes to budgeting. Most new home owners are financially savvy enough to calculate the mortgage, interest, taxes, and insurance payments; but tend to forget less obvious expenses. Here to help are a few budgeting basics for first time home buyers.

Moving Expenses: Truck rentals, time off of work and, of course, - gasoline ... moving takes money whether you do it yourself or pay others to do it for you so plan accordingly.

Maintenance: From lawn care to fixing a door knob, owning your own home involves maintenance. Few first time home buyers remember the expense of maintaining a yard until the neighbors start giving them dirty looks. Don't be caught by surprise because this is one area where expenses can add up fast. Set aside funds for a lawn service and pool maintenance, or plan to purchase the tools required to do it yourself, including lawnmowers, garden and hand tools plus other general maintenance items.

Utilities & Communication:  New home buyers are frequently surprised by the cost of utilities since many apartments include basics like cable, trash, or water.  Set aside enough funds for deposits and the first payment for utilities, phone, cable and other necessities. Don't forget to find out if your cell phone, cable, and other services are available in the new area -- otherwise, you may be forced to break a contract to obtain services.

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Tags:
buying
home
budgeting

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Rainmaker
579,727
Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

I read somewhere a long time ago to budget 2% of a homes value for maintenance... it is a good rule of thumb =)

Nov 06, 2009 03:37 AM #1
Rainmaker
155,388
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Serenity, good recommendations.

Nov 06, 2009 03:40 AM #2
Rainer
7,472
Serenity Thompson
Tunmire Realty - Fort Worth, TX

Thanks guys! It comes from experience. When I bought my home 5 years ago we set aside enough for appliances and groceries. It was Summer and the outside maintenance had to be done and we didn't budget for any equipment. I will never do that again (we have a very mean HOA)!

Nov 06, 2009 03:48 AM #3
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Rainer
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Serenity Thompson

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