The Homeowner Budget – An Inside Look
An Inside Look at the Homeowner Budget
Long before you begin your property search and fall in love with your dream home, there is one crucial item to put on your homebuyer To-Do List besides obtaining your preapproval – the homeowner budget! It’s important to remember that if you create your monthly budget ahead of time, you are less likely to get in over your head later. Let’s get into it, shall we?!
Mortgage Interest and Property Taxes
Your monthly mortgage will be made up of the principal and interest on your home loan. What many don’t share, are the additional costs of annual property taxes and homeowner’s insurance premiums. These costs combined make up the total monthly payment and will vary by property.
Remember to add budget line items for all utilities including electric, water, phone services, garbage and refuse, internet services, and gas. Pest control is another expense that can be often overlooked.
Remodeling and Updates
Even with a dream home that’s move-in ready, there are likely to be a few updates or remodeling projects to budget for — in order to make the home your very own. Keep in mind that things will come up as you get settled, and that there will be plenty of time for home improvement projects later on down the line. Save incrementally and pace yourself!
Maintenance and Repair
Depending on the age of your home and whether or not all of the major systems are in excellent order, you will need to budget for routine maintenance and repairs. As with everything else in life, things happen. Hot water heaters leak and need repair, kitchen appliances break, and regular tune-ups will need to be maintained. You can also budget for a Home Warranty Program with trusted firms like One Guard Home Warranty. It is important to renew this policy annually and keep yourself protected. They are a lifesaver when it comes to maintaining your new home on a budget, and as your Realtor, I successfully negotiate your first year with any pre-existing home purchase.
In order to help avoid overspending, stay on top of all monthly expenses, not just homeownership costs. Include a homeowner savings line item to your budget and monitor your savings progress along the way. Remember, this is now much easier to navigate with a fairly fixed home payment!
No matter where you are in the homebuyer process, I can help. Schedule your buyer consultation here, let’s get started!