Be Smart and Buy at the Lower End of Your Housing Budget
Be smart and buy at the lower end of your housing budget so that you aren’t struggling each month to make your mortgage payments. Smart home buyers understand that purchasing a home can cost significantly more than the original offer. If you are a first-time home buyer, don’t be tempted to stretch your budget to obtain the house of your dreams. Leave a sizable buffer between what you can afford and maintain so that when all is said and done your checkbook isn’t taking a beating at month’s end.
Remember, on top of the price of the house are the lawyer’s fees, closing costs, and lender’s fees. Approximately 3% to 5% of the purchase price is added at closing, which can include loan applications and credit report fees, property appraisal costs, title services, title insurance, private mortgage insurance, property taxes, and homeowner’s insurance. These additional fees will increase the amount you pay each month on your mortgage.
There are other reasons to buy on the lower end of your budge.
Your mortgage won’t be the only expense with your home. The average homeowner spends 1% to 5% of the home’s value per year on routine maintenance and unexpected repairs. If your mortgage payment doesn’t leave room in your budget for these expenses, your home value will decrease as repairs and maintenance go unattended.
More disconcerting than a plummeting home value is defaulting on your mortgage. What happens if you lose your job or are injured in an accident? A good rule of thumb is to have 3 months of savings put aside to keep you afloat when unexpected emergencies arise. You do not want to lose the home that you worked so hard to purchase because you stretched your budget from the start.
At Ballengar Real Estate, we believe that buying a home should be a pleasant experience that lasts long after you made your first mortgage payment. Purchasing a home on the lower end of your budget isn’t simply a smart decision, it’s a necessity that we help you achieve. Schedule a consultation appointment today with Audrey and Kip at 267.300.8469!