For most of us, the asset value of one’s home represents our largest financial asset, so doesn’t it make sense to be as prepared as possible for the most common expenses associated with home ownership? ? Although this activity is often considered an essential part of the so-called American Dream, unless a homeowner is as prepared as possible, it could turn into a nightmare! The more you know and recognize what to prepare for, the easier and less stressful this happy act becomes! With that in mind, this article will attempt to briefly consider, examine, review, and discuss 6 of the basic expenses associated with home ownership.

1. Down payment and closing costs: Although most people know and understand what their down payment will be because they are informed by their lender, many do not fully consider many of the other associated closing costs. These include: title insurance and title search; prepaid property taxes and utility charges; refund to previous owners, prepayments on various items; legal costs; filing fees; etc

2. Monthly recurring expenses: Many expenses associated with owning a home are recurring! Everything related to one’s mortgage must be considered, including principal payment, interest, and escrow charges. It’s also important to understand some of the escrow items, such as property taxes, which often increase annually.

3. Immediate cosmetic upgrades: Even when buying a house, which is considered move-in ready, the new owner usually has slightly different tastes and needs/priorities and therefore will usually want to make sure it’s immediate. , cosmetic changes/updates such as paint, flooring related changes, etc.

4. Routine repairs: Be prepared for routine repairs such as repair/fixes, minor appliances, doors and locks, and all those things that everyone who has ever owned a home eventually realizes, must expect, anticipate, and be prepared, for!

5. Major repairs: One must create a reserve fund to be prepared for major repairs that are needed from time to time. These include: heating and cooling/ventilation/HVAC systems; major appliances (such as washer, clothes dryer, refrigerator, oven/range, dishwasher, etc.); structural work (such as roof, gutters, windows, walkways, driveways, etc.), etc.

6. Renewals: No matter how excited one is about the house, purchases, priorities, needs, etc., change, the passing of time, and renovations may be indicated and necessary. Sometimes it may be related to the kitchen, or a bathroom upgrade, while other times one may decide to expand (add on) the existing home, because a homeowner feels they need more and/or different spaces. , etc.

The more prepared one is, the happier home ownership, the experience! Proceed Wisely and Preparedly!