Purchasing your first home is a very important and exciting step. It takes a lot of hard work and research to buy a home. Sadly, the excitement fades away when you start to look at the financial side. This is perhaps the most important part to understand.
Mortgage calculators are a good place to start, as they will show you some potential costs involved with home ownership. A trusted financial advisor is your next step as they can inform you of other costs and perhaps use a budget calculator so you can see the bigger picture.
Mortgage payments can look daunting but they are not the whole picture. You have utilities and non-budgeted expenses you have to be prepared for. Insurance helps to soften the blow but it does not cover the small stuff. The best strategy is to put money into savings every month to cover these unknown costs.
Utilities, insurance, and other bills can often increase during the first few years of homeownership beyond your estimates so be sure to build in some headroom in the budget. You do not want to live paycheck-to-paycheck and not able to get rid of that wallpaper you despise. It will only make you unhappy with your home purchase and no one wants that!
If you have any questions or need to talk with a trusted financial advisor come see us in a branch, give is a call, or visit our website whenever it is convenient for you!