There are many things to consider when you’re buying a home. Owning a home in today’s economy is living the “American Dream.” New millennials are opting to own their first home over renting an apartment. They prefer the prospects of being a first-time homeowner over renting an apartment with less space, rude neighbors, crowded parking spots, and a hostile landlord. So, you’ve decided to buy a home, what are your financial obligations? A professional can help you sort out the ins and outs of the financial obligations of owning a home, but the following user-friendly guide will give you some basic ideas on your financial responsibilities for home ownership.
Financial Obligations To Buy A Home
- Emergency Funds
Emergency funds is a very important aspect of homeownership because it helps you prepare for financial obligations that may arise after you purchase your new home. You can always run in a financial rut that causes you to miss a mortgage payment or two, but with the right emergency funds set aside, you can prepare for illness, injury, or loss of income.
- Mortgage/Down Payment
Your financial backing to buy your new home is one of the most important parts of homeownership. You may have to prepare to put down your own down payment or work with a mortgage lender like the FHA. However, the obligation is still there to secure $10,000 or more for your down payment. If you start saving your money early, it could still take 5-10 years to save enough money for a down payment on a home. Plan as early as possible by putting enough money aside for your dream home.
The Home Owner’s Association in your neighborhood and city ordinances will require that you keep your home at a certain standard. Keeping the grass cut, trees trimmed, and leaves raked up in the fall will cost money (unless you get the kids to do it). A professional landscaper can help you maintain an eye catching yard and possibly help you with that garden you’ve always wanted.
Don’t set aside your financial obligations as a home owner because it can cost you in the long run. Owning a home isn’t cheap, but with the proper financial planning it’s worth the effort. Plus, the value of your home is dependent on a lot of factors that will weigh in on how much money you have invested in your home to keep up it’s appearance.