Owning a home comes with a slew of unexpected expenses. Ensuring that you are prepared for these expenses will enable you to keep your property in good condition and budget accordingly. Home ownership costs are important to understand when you are deciding on purchasing a new home. When you work with our experts at Gardner Homes, we will ensure that you have the appropriate guidance to keep your building in the best possible condition. Our communities can help you to obtain the perfect property that matches your budget.
Effective Budgeting
When you intend to purchase a home, it is important to consider all of the various costs to expect. This will help you to decide what you can afford to pay for your property. In most situations, it is a good rule of thumb to ensure that your monthly expenses for housing won’t exceed 28% of your gross monthly income.
Down Payment
When you purchase a property, one of the biggest expenses is the down payment. This often requires a substantial amount of planning in order to come up with. It is also important not to completely drain your savings on the down payment, because you will also have to consider closing costs. The standard down payment is usually 20% of the purchase price. Keep in mind, however, that paying a bigger portion for the down payment will reduce the amount of interest that you pay in the long run.
Closing Costs
After the down payment, there will be several closing costs that you should be aware of. For example, it is important to have the property inspected prior to purchase. Other common fees include appraisal fees, credit report fees, HOA fees, and other factors. You should budget for around 2-7% of the total purchase price to handle closing costs.
Moving Costs
Many people overlook the expenses associated with moving. In general, these expenses run between $500 and $2000. Keep in mind that these expenses will depend on your specific moving processes. You will need to pay for moving supplies. It may be necessary to hire a mover or pay for a truck rental.
Plan for Repairs
It is beneficial to put money aside for potential repairs. When damage impacts your building, it is important that you are able to make repairs quickly. This will help you to limit the extent of the damage and keep your property in good condition.
Monthly Payment
When you own a home, there are several monthly expenses that you will need to keep in mind. Your mortgage payment will include the principal and interest of your mortgage. You will also have to pay property taxes, as well as insurance for your property. Some mortgage lenders will require private mortgage insurance, which will be an additional expense. Other expenses to plan for will include HOA dues, maintenance expenses, and the utilities that you use.
Home ownership costs are important to plan for. This will help to minimize severe financial consequences that can occur when you purchase a home. The homes at Gardner Homes are designed to ensure that all of your needs can be met. To learn more about our homes and our communities, contact us at Gardner Homes today!