Budgeting for Home Ownership 2016

By
Mortgage and Lending with Diamond Residential Mortgage Corporation 031.0016549 NMLS#219299

Budgeting for Home Ownership

Here's what to make room for in your homeowner's budget.

Monthly Expenses

  • Principal and interest payment on your mortgage
  • Real estate taxes
  • Homeowners Insurance--ask insurance agent for an estimate
  • Heat--check owner's current bills
  • Electricity--ditto
  • Optional costs: water, sewer, trash collection, homeowners association dues

Repairs

  • Go to your home inspection, ask questions, and hold on to the report. Some repairs may be done by the seller. But some things may be future concerns, like a roof, furnace, or water heater. Inspectors can tell you when major components may need replacing. A furnace can last 12 to 15 years, a water heater, 10 to 12 years.
  • Address all problems when they come up. A loose bathroom tile can be fixed for a few dollars. Ignore it and you're rebuilding a wall. Set aside $500 to $1,000 a year for these small repairs.

Improvements

  • Estimate when you'd like upgrades done. Can you live with those kitchen countertops another two years, or another two months? When will you need a new deck? What about landscaping? Will you put on an addition down the road? Decide what you want, get rough estimates, and start putting money aside.
  • Experts suggest homeowners have 1% to 3% of the purchase price of the home socked away for improvements and surprise expenses.

If you have any questions about this or any other part of the home buying, financing, or refinancing experience, please contact us today...and best wishes in this and all your endeavors!

 

 

 

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"Wealth is what you accumulate, not what you spend." 

 
With Respect; 

William Piotrowski

Mortgage Originator  
Originator License # 031.0016549
N.M.L.S #219299 

 

582 Oakwood Ave

Lake Forest IL 60045

 

Cell.(630).881.8655

E.fax (888).845.2691

 

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And maybe think about a home warranty?  Do lenders/underwriters care if one is in the contract or not?

Jan 30, 2016 09:58 AM #1
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