Buying a new home is one of the most exciting decisions that you can make. However, the home buying process can still be intimidating for some prospective buyers. But don’t worry, we at Christopher Companies are here to help! Here are three basic guidelines that you can follow in order to avoid any financial “surprises” when buying a new home:
- Create A Financial Plan Early: Buying a new home is a major expenditure. You need to make a financial plan to figure out how much this new expenditure will cost you each month. However, it’s one thing to put your budget in writing; it’s another thing to actually adjust your spending habits. Get used to having that mortgage payment in your budget as soon as possible and don’t forget to make sure you have factored expenditures such as insurance, taxes, HOA fees, etc. As a general rule, your total monthly payment should not exceed 28 percent of your gross, or pretax, income.
- Make Sure You Have Emergency Savings: While you may have saved enough for a down payment, you have to be prepared for the unexpected. You never know what’s going to happen in your life! A general rule is to save 3-6 months of basic living expenses in case of emergency.
- Check Your Credit Score: Before you commit to a new home purchase, make sure to check your credit score. A high credit score will save you a lot on your mortgage and the associated fees. Interest rates and mortgage-related fees tend to go up for every 20-points lower your interest rate is. Knowing your credit score will help you prepare for how much your mortgage will be.
Christopher Companies has a wide variety of new homes for sale in Northern Virginia and coastal Delaware. Along with being practical, comfortable and exceedingly livable, our homes feature aesthetically exquisite designs and incredible curb appeal that you’ll be hard-pressed to find elsewhere. Please visit the Christopher Companies home page to learn more about our amazing new home communities.
Source: CNBC.com