Ignite FB Tracking PixelPreparing to Buy Your First Home - Martha Erickson
Preparing to Buy Your First Home

by Martha Erickson 10/28/2018

Many factors come into play when determining whether you can afford to buy a house. Since the monthly rent for an apartment is often close to what a mortgage payment would be, you can't help but wonder if your rent money would be better spent building equity in your own home.

While this is often the case, first-time home buyers often underestimate or overlook expenses that accompany home ownership. Although a mortgage broker or bank loan officer can help you calculate the maximum mortgage you can afford, here are a few tips to keep in mind as you weigh your options.

  • Create a detailed budget. By taking the time to figure out how your income stacks up to your monthly expenses, you can get a clearer picture of your financial situation. If you have a good credit score, a positive monthly cash flow, and enough funds to pay closing costs and a down payment, then home ownership may be a viable option. (Your credit score, which you can obtain once a year for free from the three main credit reporting companies, will have a major impact on both your interest rate and your monthly mortgage payments.)
  • Factor in other expenses: Figuring out your current budget is relatively easy, but predicting your future budget as a homeowner can be a lot more challenging. A big part of the equation will depend on the amount of property taxes and school taxes that will be tacked on to your mortgage costs. A real estate agent can provide you with those figures, as well as other information you need to calculate how affordable it would be to live in a particular house. They have access to a wide range of relevant information, such as utility expenses, water bills, and homeowner association fees (if there are any). Since property taxes sometimes cover the cost of services like garbage and yard waste collection, you may not have to factor in those items into your projected budget. Your real estate agent can help you come up with a rough estimate of home maintenance costs -- especially if they're familiar with the history of the home you're considering buying. As the process moves forward, a property inspector can provide you with more details about the condition of the home and whether any costly repairs are likely to be needed soon.
  • Home maintenance and furnishing costs: Other possible expenses to consider when estimating the cost of home ownership include yard maintenance, landscaping, HVAC service calls, electrician services, plumbing repairs, and homeowners' insurance. If you're a first-time home owner, there's also a good chance you'll need to buy some furniture to fill out those additional rooms!
  • Buying your first home definitely takes a lot of planning, budgeting, and research, but the rewards of owning your own home will more than justify the effort!

    About the Author

    Author
    Martha Erickson
    Long time Marco Island residents Martha & Roy joined Berkshire Hathaway Florida Realty (originally Prudential Florida Realty) in 2001. Roy retired in 2016. Martha continues to be a very active realtor and has marketed condominiums, homes, and homesites throughout Marco Island and Naples. She specializes in Hideaway Beach. Martha’s knowledge of customer relations and services, after many years in retail and advertising, combine to create a positive experience for her customers buying and selling a property. The Erickson Team have been recipients of various awards including Chairman’s Circle Gold, which is awarded to the top 2% of Berkshire Hathaway Agents. BHHS National Honor Society and the President’s Leading Edge Award. Martha has also been named a FIVE STAR Real Estate Agent - Best in Client Satisfaction for the past 15 years. You won’t find anyone more qualified than The Erickson Team to help you in the sale of your property. Please consider us if you or someone you know is ready to make a move. Martha is ready to assist you with your Real Estate needs. Martha Erickson, Realtor®, GRI. CRS, SRES Designations: Luxury Home Specialist, Marco Island Specialist, eCertified, Memberships: National Association of Realtors, Florida Association of Realtors,.Marco Island Area Association of Realtors, Naples Area Board of Realtors Interests: Golf, boating, travel, reading Email: [email protected] Cell phone: 239-272-0912