Few times are more exciting in a person’s life than buying a new home. But, to go along with it, few times are as stressful as well. There are so many things to think about and budget for when you are purchasing a new home that it can seem overwhelming, but it doesn’t have to be.
Take a look at this list and see if you can make your search a little more doable with what you have to spend.
When it comes to the deposit on your new home, generally speaking, the bigger the better in terms of your monthly payments, but this also has to account for your and your partner’s credit ratings and so forth. Aim to take care of 20 percent of the purchase price to cover all costs involved so that you can move forward quickly and confidently with your home purchase. Having some additional savings, however, does act as an additional buffer for unexpected upfront costs and other issues.
Also take your time to look through and pre-approve the best loan for you. This is one of the most important steps in the home-buying process as it affects your payments for as long as you owe them on the property, so make sure that you are making the best decision for you and your family before you sign.
2. Fees and Closing Costs
You might not even begin to realize all of the costs and fees you may face as a potential homeowner in your neighborhood. Closings costs include your appraisal, loan, title, and lender fees. Monthly homeowners-association fees could also be a distraction from your ability to create a home that meets your basic financial needs.
Moving costs are almost always higher than you might think. What you first need to consider is whether or not you are moving locally, nationally, or internationally, as moving services often change by the hour or amount of packages. Even local moving costs can have several actual fees involved such as an hourly rate based on whether the movers are actually wrapping, loading, or driving from point A to point B. If you need to charge your delivery service for packaging materials, which is another expense you will have to account for.
The average cost of movers for two men and a truck is between $90 and $120 per hour, depending on your needs. Long-distance costs will, of course, be more, and are generally figured by the weight or per cubic foot of your inventory. However you proceed with inter- or intra-state movement of your property, make sure you do plenty of research before spending all of your money in one place.
As an example, here is a small chart about average moving weights you may need to ask for specific amounts for:
Studio that weighs about 1,800 pounds.
1 bedroom apartment that weighs about 2,200 pounds to 3,200 pounds.
2 bedroom apartment that weighs around 5,000 to 6,000 pounds.
3 bedroom houses may go up to 9,000 pounds.
4 bedroom or larger houses may have household items that are worth 11,0000 pounds or more.
How much you need to save, obviously, greatly depends on how big of a place you are packing up and into how much space you intend to move to.
There is a general rule that at least 1 percent of your new home’s value should be set aside for home maintenance and repairs. For example, if your home costs $300,000, you should put aside $3,000 for repairs for the year. The same rule goes for budgeting about $1 per square foot of your home for potential maintenance and repairs.
You may not spend this much in any one year, as it is indeed an average, but you never know when you might need several thousand dollars to put toward certain repairs, which is why it is always good to prepare ahead of time. Of course, if you purchase a home at its prime and newest conditions, you won’t have as much to worry about at first, but continue to get keep this figure in mind as you move forward with your home ownership.
5. New Appliances
One of the biggest investments in a new home is in new appliances, such as for the kitchen or bath. This includes anything from sinks to tubs to refrigerators, and all are relatively necessary for daily home life, so they become a necessary expense.
The best thing to do is to decide exactly what you need and exactly what your budget is to spend for it before you go shopping, as appliance vendors can rein you in with prices based on certain features and leases that you may not be able to afford in the end as you go along. Be smart with your appliance purchases, and make sure that you are equipping your home with only what it needs as you can afford it.
6. Securing Your New Home
Now that you are moving all of your belongings to a new and beautiful home, you want them to be protected, right? Well then you need to consider a quality home security system to ensure that you, your family, and your property are safe from potential intruders. One way to do this is to use the SafeWise security system finder tool, which is a side-by-side comparison of different home security options that you can use to determine which one is best for you.
In the end, you want to make sure you budget for everything you can think of so that you won’t be left in a compromising position as you begin your new life in your new home. Take your time and review all of your options closely and carefully to ensure that you are covering all of your bases as you move forward with this important decision in your life.
Written by Carolyn Heneghan
Carolyn is a nutrition and environmental crusader who loves using and exploring technology almost as much as she enjoys writing about it. Learn more