Mortgage debts – Factors which can drastically affects your affordability part 3
Hi folks…Hope you are enjoying my posts, I am honestly trying to provide you as much information as possible in within a concise version. Here goes the 3rd and final part of my last post, enjoy.
Costs other than Mortgage :
There is nothing like more adventurous and exciting than buying a new house. But many prospective homeowners, forget about their financial responsibilities as a homeowner due to the sheer excitement. There is no other opinion that a mortgage loan is the biggest housing expense. But there are several other expenses which sometimes still exists even after the mortgage is paid off. So, as a smart buyer, keep this costs also in your mind :
Cost of Utilities – You can not avoid the cost of light, water, heating, sewage, garbage disposal, cable, phone services etc. While calculating the DTI ratio, these costs will not be included in the front-end as well as in the back-end ratio. But no homeowner can avoid these expenses in any circumstances.
Cost of Maintenance – No matter what you do, your new home won’t remain new forever. Even your costly major appliances like cookers, dishwashers and freezers will also depreciate time to time. The same applies to the exteriors like furnace, roof, driveway, walls and the paint on it. You may found yourself in a hazardous situation, if you consider yourself as ‘house poor’ while taking on first mortgage payment. It is because your finances haven’t improved when you need some major cash for some major repairs.
Cost of Furniture and Décor – If you look around at your neighborhood for new homes after the dark, you’ll see some interiors with big, empty rooms. It is because those big, beautiful houses didn’t use any coverings like window curtains or furniture. Before you buy a new house, check all rooms and places which need furnitures and decoration. Many homeowners spent all the money and focus for buying the house, they often forget or can’t afford to do the decoration work initially.
Cost of Association Fees – In some housing communities, homes are charged with monthly or yearly association fees. Sometimes these fees are quite higher than any other costs. starting from $100 to several hundred dollars per month. So, check for association fees before making the house deal. Know about its coverage like lawn maintenance, snow removal, garbage disposal service, community pool and other services.
Think Before purchasing. Cost of having a house is quite big. So, while making this cost do not underestimate the other essential expenses that can incomplete your duties as a homeowner.