Good day from the Vermont Mortgage Company! We hope you’re as ready as we are to tackle this new week. Having been revitalized from the weekend and last weeks holiday. Today we will be looking at what happens after buying a house. You went through the process, paid for the closing, and now have the keys in your hand. Great! But don’t think you’re out of the woods of spending just yet.
Even if it may be your dream house, you may want to add your own flare. Maybe you saw a fancy new stove or refrigerator that would look perfect in the kitchen. Or, chances are you new house may not have one! About a third of all houses come with no fridge, and two thirds may not even have a washer and dryer! These numbers come from a survey done by Home Innovation Research Labs, which shows you may not get all the appliances you expect. Naturally, you would know what is missing when buying the house.
After buying a new home, you can expect to pay a few thousand more dollars the first year. New appliances, tools, furniture, you name it. Especially if you’re coming from an apartment, you will be buying many essentials you may not have needed before. Budgeting and buying what’s most needed first will be essential during your first year in your new home.
Homes that are a few years older may not need as much in terms of new appliance purchases. Instead, you should expect to pool your money elsewhere. Renovations and repairs could eat up most of your savings, from a complete kitchen revamp to having to replace roofs or HVAC units. Even a house that was built in the past 5 years could require some repairs.
While these new expenses may be thought about, they are rarely discussed. Usually, budgets and debt are factored into monthly mortgage payments and closing costs, not life in your home that comes after. Make sure you have a small pool of savings to prepare for emergency costs or renovations. It will be difficult to enjoy your new home without a refrigerator!
However, we must throw in a word of caution: While we know it will be exciting to buy a new set of furniture, it is important to not make any big purchases that could affect your credit profile. Credit is checked right before closing, so any new debt will be seen. While unlikely, it could cause a hiccup right at the end of the process. Waiting a few days after the closing dust settles to see where you are financially, and what needs to be done, can really help you out in the long run.
If you have questions about anything home related, or how to effectively budget your new home, feel free to contact us! Your local mortgage gurus are waiting to answer any and all questions or concerns you may have. As always, we are reachable at 802-863-2020, or on our website.