Home Ownership Expenses You Might Not Expect
I had the chance to participate in an interview by Tali Wee at Zillow. I was able to share our experience as a first time homebuyer. I was one of a few bloggers who shared their experience including bloggers from Financially Blonde, Stacking Benjamins, Student Debt Survivor, Save and Conquer, Retire by 40, Fitnancials, and Wise Dollar.
Below is more Q&A that didn’t make it on the interview.
1. Tell me about the homeownership expenses you planned for prior to purchase. What saving strategies did you use and have you used your budgets as expected?
We planned for a 20% downpayment, closing costs, and an initial fund to do some needed repairs. We were very aggressive with saving our money prior to buying our house. We were saving over 50% of our income. We didn’t go out very often and we tried to eat home.
2. What are the most costly expenses you pay as a homeowner that you did not pay as a renter?
Maintenance has been the most costly expense. So far, we have had to call a plumber to fix a leak, the exterminator to exterminate, and now, our garbage disposal is broken. $100 here and there adds up.
3. Is homeownership what you imagined it would be? Please elaborate.
Yes and no. I thought updating the house would be a lot more fun. It is! I love the end result, but it takes time and money. I love having our own place and being a little further away from neighbors.
4. What advice do you have for a prospective homebuyer budgeting to purchase a home and become a homeowner?
Plan to have a 20% down payment saved up, additional savings for closing costs, and shop for your mortgage. I found out later Capital One would have given me a small refund on closing costs. Don’t be in a rush to buy furniture and update your house. Take your time and save your pennies!