Todd’s Mortgage Minute: Are you really ready to buy your first home?
In the mortgage industry, nothing is more rewarding than helping a client purchase their first home. The day is met with excitement, enthusiasm, and oftentimes photos to remember the day that someone has started “a new life!” That day can also be met with anxiety, worry, and wondering, “Did I make the right decision by purchasing this home?” At the end of the day, those of us in the mortgage industry should really be educating these first-time buyers so they’re prepared once the moving truck is gone and so they’re budgeting for the one-time/first-time expenses, as well as monthly bills, that come along with being a new homeowner.
From a monthly perspective, if you’re moving from an apartment or condo, you may not have had all of your utilities set up in your name — some may have been included in your rent. Cable, water, electricity, gas, internet, garbage pickup, and pest services are all monthly expenses that you’re going to have as a new homeowner. Oh, and by the way, many utility companies will not set up these services unless you pay a deposit. Did you have these costs in your budget?
First-time purchases should also be budgeted for, considering some of them are big-ticket items. Do you have a lawnmower? You’ll need a gas can, along with a weed-eater of some sort, as well. Does your new home have a refrigerator or a washer and dryer? Chances are if you’re moving from an apartment, those appliances stay in the apartment and you’ll have to buy these items. If your home is newly built, you’ll need blinds for the windows, or some sort of window treatments — not just for the front-facing windows of the home, but for ALL windows. And trust me, you don’t want to be known as the house on the street using Star Wars sheets as curtains.
The bottom line: there’s more to purchasing that first home than just having the funds needed for closing and being able to afford the monthly loan payment. Make sure you’re ready so you don’t stress after the move. Homes are meant to enrich our lives, not to stress us out!