Take your time with renovation projects. Keep all household warranties and manuals in a safe place. Change the locks before you move. Paint the house before you move in.
We have some tips and tricks for homeowners to help you prepare for those surprises and maybe even save you a few dollars in the future. If you buy a home from your previous property, it will almost inevitably need an unexpected repair soon after. You may need to replace a water heater or pay a home insurance deductible when the weather is bad. The Federal Housing Administration formula, used by many lenders, recommends not allocating more than 31 percent of your monthly income to paying for housing.
This figure will change depending on the amount of your debt. Buyers with no other debt can budget up to 40 percent of their monthly income for housing. But remember that the rest of your budget will have to go to heating, water, electricity, routine home maintenance, and food. Gather all the warranties for your appliances and other important documents, such as house documentation, insurance documents and your deed, in an easy to find place, such as a folder for homeowners.
Consider the above tips for new homeowners to make sure you're prepared for everything your home throws at you in those first few years. However, a new home may have higher costs and may include completely new bills, such as homeowners' association fees. Today, lenders generally prefer to limit housing expenses (principal, interest, taxes and homeowner's insurance) to approximately 30% of borrowers' gross monthly income, although this figure can vary widely, depending on the local real estate market. Or maybe you see homeownership as a sign of independence and enjoy the idea of owning your own home.
The IRS considers repairs to be an integral part of homeownership, preserving the original value of the home but not increasing its value. The first step is to determine what your long-term goals are and how homeownership fits those goals. One of the best maintenance tips for homeowners is to spot minor problems before they become serious problems. When reviewing your budget, don't overlook hidden costs, such as home inspection, home insurance, property taxes, and homeowners association fees.
Just as important as getting your first home is staying in it, and no matter how beautiful the solid maple kitchen cabinets are, it's not worth jeopardizing your new ownership status. Neal Khoorchand, broker and owner of Century 21 Professional Realty in the South Ozone Park neighborhood of Queens, New York, pre-qualifies his clients before showing them properties.
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