Have a firm idea of what you can afford.
Whether you’re a first time homebuyer or getting into your second home, when you begin your homebuying process, you need a firm idea of what you can afford and where your price point should be.
Consider the following factors when planning your home purchase:
Most buyers require a mortgage. Work with your lender to pinpoint your monthly payment, the costs of your mortgage and the difference in offers. Your mortgage costs can vary significantly depending on your loan type and interest rate. Today’s most common loans include:
Property taxes can significantly raise your monthly outlay and may slowly increase depending on a variety of local factors. Typically, a home is taxed on its assessed value, which is an amount equal to a fraction of its appraised value.
Utility expenses are a given, especially water, gas and electricity – and don't forget your cable and Internet bills. Have your Berkshire Hathaway HomeServices agent ask the homeseller for their average monthly cost over the last year to help you estimate how much to put aside monthly.
Upkeep and Upgrades
Reserve time and money for upkeep inside and outside your home, from landscaping to flooring to appliances. Unless you have a green thumb and the desire and time for maintenance, you must hire a gardener to mow, weed, and care for beautiful flowers and shrubs. Ask your Berkshire Hathaway HomeServices agent for referrals and compare costs.
Once you tally these costs, you may need to adjust your price range. This will make for a smooth and financially comfortable transition into your new home. Frank Perez-Andreu your Berkshire Hathaway HomeServices agent will help you each step of the way.