New Washington DC Homebuyers: Avoid These Budget Missteps
Core Capital Group’s Budget Tips for New Washington DC Homebuyers
You are ready to sign those papers and get the keys to your new Washington DC home but before doing so, here are some expenses you need to make sure that both your budget and your bank account are prepared for.
- Your Monthly Mortgage Payment
Your monthly mortgage is where you need to start your budget because it is generally the most expensive factor. Remember you will need to be prepared to pay at least this amount for the next 15 or 30 years.
- Preparing to Pay Your Property Taxes
You will need to be prepared to pay your property taxes at least twice a year. In some areas your property taxes can increase each year while in others your property tax is dependent on the original purchase price. Be sure to check your area regulations.
- Insurance for Your Home
Insurance can change not only depending on which company you choose but also where you live. Money saving tip: If you are already working with an insurance company check and see if they will offer you a discount by bundling your various coverages together!
- Other Insurance
You never know what the weather will do next. You need to make sure that you are prepared for the next natural disaster by purchasing hazard insurance and making sure you and your house will be safe.
- Monthly Housing Fees
Depending on where you live you may need to pay a monthly or yearly fee. This money generally is put towards maintaining the grounds, buildings and extra facilities such as swimming pools or tennis courts.
- Utilities
You have probably been paying utilities where you are now but utilities for a home can be more expensive due to it being larger and, as a result, more expensive to heat and cool. You will also need to prepared for expenses such as water, trash removal and sewer costs.
- Rainy Day Account
You may need to replace the roof or the heating system of your house or you may want to build that perfect bathroom for your master suite. Whether it is a planned cost or an unexpected one you do not want to drain your savings with these repairs or renovations. Make sure you are putting money away monthly for those big expenses.
- Recurring Maintenance
Things are going to go wrong in your house. The dishwasher may break or the washing machine may die. You need to be prepared for this so when it does happen you do not have to dip into your savings.
- Outside Care
Depending on where you live and what your home looks like your exterior may need seasonal care. You can always hire a professional to fix things like the broken pool filter, but be aware that these expenses can add up quickly.
10. Setting up your New Home
Once the deal is sealed and the home is officially yours, you are now going to need some place to put your feet up after this big accomplishment. You are either going to need to spend money on moving or on new furniture or on both. This can be expensive but you will want to make sure it fits your style and your budget.
So remember, buying a home means your expenses are much more than just what you will pay for the property. When planning for your new Washington DC home budget you will need to take into account not only the mortgage and utilities but other expenses such as taxes, insurance and maintenance.