We all know that getting prequalified for a mortgage before shopping for a home is an essential part of the process. But are you thinking about home expenses when you are figuring out what monthly mortgage amount you are comfortable with?
Not only do you have to add property taxes and homeowners insurance to your monthly payment, but you need to be thinking about repairs, utilities, maintenance and improvements. I encourage the first time home buyers I work with to attend a Home Stretch workshop offered through The MN Home Ownership Center. The information they provide is priceless and can save you a major headache down the road. One of the most important steps to becoming a successful homeowner is efficient and effective money management. Understanding finances and credit is a large segment of what is taught in the Home Stretch workshop.
The old adage goes “Plan on spending 1-2% of your home’s value on a yearly basis for upkeep and future maintenance.” Make sure you are realistic about the home you buy though. If it is an older home, chances are good that it will need more money to maintain it. The MN Home Ownership Center has put together some amazing statistics and information on how much homeowners are spending on home expenses and breaks down where those dollars are being spent. Check out their blog post today to read more about where the money goes.
As G.I Joe would say, “Knowing is half the battle.” If you are looking to buy your first home be sure to sign up for the Home Stretch workshop. There is much more than just your monthly mortgage payment that goes into figuring how much home you can afford.
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