Okay, Homeowner's questions???

**beckanoah** · 09-29-2005, 11:35 AM

I am going to be purchasing a home in the next 6 to 12 months. I need to know all the incidental things I need to take into account, to set up a budget, as well as make it through the process.

I want to make sure I don't forget anything in my budget, such as taxes, heat, gas, etc...

Any hints,ya'll could give me would be SOOOOO appreciated!

**inneedofhope** · 09-29-2005, 11:47 AM

remember to figure in some $$ to put into savings each month for repairs that may come up or improvements you may want to make down the road.
utilities to think about: electric, gas, oil, water, sewer, garbage collection, phone? cable? lawn maintainence?

**PrairieRose** · 09-29-2005, 11:48 AM

When you finance a house the homeowners' insurance is usually figured in with the house payment, but you certainly want to be sure of that. Also you need to budget a portion monthly to save for a household EF (like the hot water heater goes out and you have to make a carpet repair and replace the H.W. heater). Not everyone will find this pertinent but I always have to do a little "sprucing up" to a new place as well.

**forestdale** · 09-29-2005, 03:19 PM

beck, I'm presuming you live in the US. Here is a site I found that has quite a bit of good info.
http://www.hud.gov/offices/hsg/sfh/b...hm.cfm#General

Good luck and keep us posted.

**Valerie in WA** · 09-29-2005, 03:27 PM

Originally posted by PrairieRose
When you finance a house the homeowners' insurance is usually figured in with the house payment, but you certainly want to be sure of that...

In our experience, the bank said: "To finance $XXX,xxx over XX years at xx%, your monthly payment will be $XXXX, BUT then the insurance and taxes are ADDED to that. For us it's about another $200 per month.

When you actually finance there are all the 'closing costs' - which are bank fees, credit check fees, appraisal, etc. Those will either be added into your amount financed. You might think about saving enough of a down payment to include closing costs. I think ours were in the range of $3000, but I'm not at all sure.

Before you agree to buy a house, you'll want to pay $250-$400 for a professional inspection. It will identify current or potential future problems with the house, including pests. You can then specify that the seller makes certain repairs prior to the completion of the sale.

I cannot agree enough with the posters who mentioned having a house EF - hot water heater, fridge, leaky roof, etc. Those big-ticket items can really hurt if you're not ready for them. Even a small thing like changing the locks can cost you $50-$100 per door. Keep in mind that if your hw heater ruins the down stairs carpet, your homeowners insurance may help you pay for the repairs - depends on your coverage and your deductible.

Oh and don't forget 'installation fees' for all the utilities.

Try to find a class to take at your bank - or any bank really. Our credit union offered a class and it was REALLY helpful.

Check your credit report NOW. That way if there are any errors, you can have them corrected by the time your home lender is looking at it. It wouldn't hurt to save ALL your bank statements and paystubs between now and then. You could also start gathering the data they'll need. Past employers and residences-and they want DETAILS - amounts earned and rent paid, etc.

Good for you for planning ahead!!

**Renee-2kids** · 09-30-2005, 12:49 AM

The bank or realtor should be able to let you know when classes are available to new homeowners. The are usually free and sponsored by FannieMae or HUD. We went to one even though we didn't qualify for a HUD loan. It really outlined well what you are asking here.

**HandyMom** · 09-30-2005, 05:55 AM

Do you need new windows? I did.

New carpeting and paint.

Do you need shrubs or landscaping materials?

How about central air? That was a necessity for me. I tried going one summer without it and I was miserable.

Any major appliances need replacing? I had to buy a washer and dryer and pay to have the gas dryer hooked up since there was an electric hook up before. Soon after that, the refrigerator died, so I had to buy a new one.

Happy hunting and I hope you find everything you are looking for in a new home!

**canadian gardener** · 09-30-2005, 12:17 PM

factor in buying a lawn mower, and always have money in the budget for repairs. If it's not the furnace, it is the hot water tank or one of the toilets or a window or the roof.

Houses need maintenance every year to maintain their value. It's a bad joke that a fixer upper is "deferred maintenance" but it's true.

You have to be prepared to spend some money every year to keep the home in the condition so that if you sell you don't take a huge loss.

Some of that is keeping updated (not the latest thing) but freshening up the paint (I'm in that process right now) or replacing old door handles or dated looking fixtures.