My friend Jackie Connelly-Fornuff of Babylon, NY wrote this wonderful post that applies to all first time home buyers throughout the country!
Toula N. Rosebrock (of Diane Turton, Realtors) - Broker / Sales Associate - Specializing in all of Ocean County - Lacey Township Real Estate, Forked River / Lanoka Harbor
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Waterfront Properties, Single Family Homes, Multi Family Homes, Condos, Townhomes, Adult Communities, Vacant Land, Commercial Properties, 1031 Exchanges
First Time Home Buyers - There Is More To Pay Besides Your Mortgage!
It's always a good idea to have at least 1% of the purchase price saved for surprise expenses. Believe me, there will be surprises! It would be better to have upwards of 3% saved but most buyers are lucky to have $1.00 and a cup of coffee left over after closing costs.
One thing that will help is if you received the $8,000.00 tax credit check, put it right into your savings account and pretend it's not there. Refer back to your home inspection report and that will tell you what you may need for the first few years and beyond when it comes to future repairs. Be prepared for those expenses now and it will save you headaches down road.
Make a budget for repairs. Do not count on borrowing money for repairs. Banks have really tightened up when it comes to Home Equity Lines of Credit.
Do not ignore those "little" repairs. Like a loose or broken kitchen or bathroom tile. When water gets in those crevices, you can end up with water extensive water damage down the road. It's better to spend $150.00 now than spending a few thousand later.
Buying a home is one of the largest investments you are going to make. When you plan things out carefully, it can be a great asset. With no or very little planning, your home will end up being a huge burden on your shoulders.
Have a Happy and Safe New Year!
Coldwell Banker Residential
Babylon, NY 11702
Direct: (631) 274-1937
Cell: (631) 703-0201