01/26/2024
📣 If you're saving money to buy a home, listen up. Here's a tip to help you avoid one of the most common first-time homebuyer mistakes -- draining your savings account to buy your home.
Many first-time homebuyers will save to put 20% down and avoid mortgage insurance, which can save you a significant amount of money over the loan.
However, sometimes they neglect to account for all the other costs involved with homeownership: property taxes, closing costs, home maintenance, homeowner's association fees, homeowner's insurance, and -- this is a big one -- home repairs.
Even if the home you buy is in pristine condition, there's still that chance that you will have an appliance break, roof leak, or plumbing emergency at some point down the road. As a homeowner, it's a good idea to have three to six months of living expenses set aside in an emergency fund -- especially after closing day.
If putting 20% down means you won't have that emergency fund to fall back on when the dryer breaks down, or the dishwasher causes a minor kitchen flood, you might consider a different loan option that would allow you to keep a cushion in the bank. Reach out today so we can explore your loan options!
