Page 24 - April 2017 Newsletter

Prepare for the hidden costs of your new home
Saving up for a down payment and closing costs, determining how much you can afford and qualifying for a loan are key steps in buy-
Household items
Buying new furniture and decorative items can be a fun part of moving into a new home. But other less ex- citing purchases, such as new locks for entry doors or a new water heater, can put a dent in your budget. To limit financial surprises, put some savings aside specifically for this purpose and identify what you’d need to buy or replace in each home you’re considering.
Maintenance and repairs
For most homeowners, repairs and maintenance cost 1 to 4 percent of the home’s value each year. Factor that into your budget so when the time comes to replace the roof or fix the plumbing, it won’t be a shock to your bank account. In addition, you may want to consider getting a home warranty to help off- set repair costs if you are worried about outdated
MIKE COYNE
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g a home. But what happens after the dust settles? Plan ahead so you won’t be caught off guard by other costs. Here are a few expenses new homeowners often encounter after the papers are signed:
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HOA fees and taxes
If your new place is part of a homeowners’ associa-
tion, your budget needs to include the monthly or an- nual dues for maintaining the buildings, amenities and common areas. Also, keep property taxes in mind when making your monthly or yearly budget.
By planning for all the responsibilities that come along with homeownership, you can enjoy your new place without financial stress. d
24 CHICAGO LODGE 7 ■ APRIL 2017