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	Holly Yacynych Bio | Email

You’ve finally found the right home for your needs…or have you? When you make a bid on a home or fork over $1,000 to $10,000, it’s important to be sure you are comfortable with the home, your future mortgage and your future plans.

Keep in mind; no home is flawless unless it was stick-built specifically for you. It’s unrealistic to expect to find a home you don’t need or want to change a bit. But those repairs or upgrades, or even painting a room or two, shouldn’t exceed your finances. Simple adjustments can be written into the contract for the purchase. Most sellers and buyers can comfortably compromise minor adjustments that are either safety hazards such as railings on stairs or minor cosmetic changes such as adding a door to a room. Other compromises, like replacing that orange shag carpeting from the 70s, may be unrealistic for a buyer to demand. Find a happy medium that suits you and the seller, or have the confidence to walk away if you can’t or if the outcome dips too deeply into your pockets.

By now you should have made a plan for your finances. You should know what you can and cannot afford, and you should have an estimate of what utilities, phone and cable may cost you in your new home. Remember, the bigger the home the bigger the electric bill. Don’t assume your past monthly electric bill will be comparable. You may have more rooms to heat/cool, more lights in more rooms, or possibly a new electric company with differing rates.

Knowing your budget is essential. Most lenders advise new homeowners to have at least three months of mortgage payments on reserve. Why? Because of the cost of hiring movers, a moving van, painting a room, installing this or that, purchasing furniture or appliances or other expenses. Expect the unexpected and be financially prepared. It’s important to pay that mortgage first; the credit card bills and just about everything else can wait – your mortgage cannot.

Re-read and understand your mortgage commitment. There are many ways to finance the purchase of a home and that means many different loans. Be sure you know how a fixed or variable rate mortgage will affect your finances. Again, be prepared because low rates may go up.

Remember: expect the unexpected…babies, temporary in-laws, a permanent live-in mother-in-law, and more. You may want to consider not for your present needs but for your future needs. An extra room can always be a guest room, a computer room, or even the dog's room.

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