PLANNING FOR THE MANY COSTS OF HOMEOWNERSHIP
When it comes to buying and owning a home, there can be a number of expenses to plan for beyond your initial down payment and closing costs. From one-time purchases associated with the move to recurring expenses you can work into your monthly budget, here’s what to know about the many costs involved with owning a home.
New Furniture and Moving Costs
Once you close on your home, the next step is moving in – and that could mean paying for movers or buying new furniture. You can expect to pay anywhere between $1,000 and $2,000 for a short-distance move, or $4,000 to $5,000 for a long-distance move, according to a Forbes estimate.
Furniture costs can also add up, depending on your needs and style.
Home Maintenance
While you never know exactly how much you’ll need to spend on home maintenance, a general rule of thumb is to budget 1% to 4% of your home’s value per year. For a $300,000 home, that means setting aside $3,000 to $12,000 per year, or $250 to $1,000 per month.
While that may seem like a lot, things can add up quickly, from taking care of your lawn to fixing (or replacing) an appliance. Regular maintenance, upkeep and inspections can help prolong the condition of your home and cut down on unexpected emergencies.
Homeowners Insurance
One cost you can plan for is your homeowners insurance – though insurance premiums have risen significantly in recent years due to inflation and other factors. That’s why it’s a good idea to shop around and get multiple quotes to make sure you have the right coverage at the best possible price.
Utilities
Another expense you can budget for is your utilities, such as water, sewer, trash and recycling. Depending on where you live, your utilities may be bundled together into one monthly bill, or they may be billed separately. Figure out how much to expect each month, and then build that into your monthly or annual budget.
HOA Fees
Condo owners or anyone who lives in an association can expect to pay a monthly Homeowners Association (HOA) fee, which can cover a range of services including maintenance, amenities, security, utilities and more.
Plan Ahead
These are just a few examples of how the cost of owning a home extends far beyond your initial purchase. That’s why it’s important to not just save for buying a home, but to make sure you’re ready to own a home, as well.
HOW TO USE YOUR HOME’S EQUITY
As you make payments on your mortgage, you build up equity in your home that can be a valuable financial resource. Your equity can be used in a variety of ways, including:
Paying off higher interest debt
Making home improvements or renovations
Funding education expenses
Funding lifestyle changes or upsizing/downsizing your home
Paying for vacations
If you’re interested in using your home’s equity, contact me today! I’d love to help you explore your options.
KEEP YOUR FINANCES PREDICTABLE FOR A STRAIGHTFORWARD MORTGAGE EXPERIENCE
The process of buying or selling a home may seem overwhelming at times, but it doesn’t have to be. One thing you can do to make the experience as straightforward and stress-free as possible is to keep your finances as predictable as possible. Here are some things you should and shouldn’t do if you’re planning to buy or sell a home in the near future:
You should:
• Be honest with your Bell Bank Mortgage team about any updates to your personal situation. From changes in your marital or job status to travel plans before close, being upfront from the start will make the process easier.
• Continue to make your credit card payments and stay up-to-date on your accounts.
• Keep your home purchase savings separate from your daily living expenses.
• Avoid making large deposits without first checking with your loan officer, as that could require additional documentation during the process.
You shouldn’t:
• Change jobs, become self-employed or quit your job.
• Buy or lease a new car, or do anything that could cause your credit report to be pulled by other creditors.
• Make large purchases like furniture, electronics or appliances.
• Open new bank accounts or transfer large amounts of money between your accounts.
• Co-sign any type of loan.
• Accept gift funds for the down payment without talking to your loan officer first. (There are special steps for this process.)
By avoiding any sudden changes to your finances or your credit score, you can help ensure your mortgage process goes off without any surprises.
THE IMPORTANCE OF PRE-APPROVALS
The first step in any homebuying journey is getting pre-approved. Having a pre-approval letter from a lender like Bell Bank Mortgage shows sellers that you’re serious about buying and are financially prepared to make an offer. Here’s what to know about the pre-approval process.
STEP 1: Determine Your Budget
As you’re getting started, one of your very first considerations is to think about the type of home you want, where you want to live, and your budget for your home search. If you’re not sure about your budget, I can help you figure out what makes sense for your situation.
STEP 2: Gather Your Documents
In order to apply for pre-approval, you’ll typically need the following information:
• Residence history for the past 2 years
• Employer name(s), job title and dates of employment for the past 2 years
• Current pay stubs covering a full, 30-day period
• W-2s for the past 2 years (and 1099s and K1s, if applicable)
• Federal tax returns for the past two years. This includes all pages, schedules, and business tax returns. If you’re self-employed, you must submit returns for businesses of which you own 25% or more.
STEP 3: Apply Online or In-Person
Once you’ve gathered the necessary documents, it’s time to apply! You can schedule a time to meet with me in-person, or submit your application online.
After you’ve submitted your pre-approval application, I’ll follow up with you as soon as possible! Don’t hesitate to reach out with questions throughout the process.
HOW TO WORK TRENDY RICH COLORS INTO YOUR HOME
Move aside, beige – rich colors are all the rage in home design and decorating this year.
This trend was foreshadowed by the pick of Mocha Mousse, a rich shade of brown, as Pantone’s 2025 Color of the Year, which we shared in our winter newsletter.
According to a blog post from the National Association of Realtors (NAR), warm, moody hues are replacing beige and light shades as popular color picks in homes. “These tones can create a sense of comfort, making a home feel lived-in rather than cold and empty,” NAR writes.
If you’re looking to refresh your home this summer, here are some ways you can blend in rich colors to both your indoor living spaces and your home’s exterior.
Indoors
• Use an accent wall to add a focal point to a room. Deep blues, vibrant greens or warm browns can help enhance a room’s visual interest.
• Add rich-colored furniture and other décor items to enhance a living space.
• Incorporate gold, brass or other metallic fixtures against rich colors to create a striking visual contrast.
Outdoors
• Repainting your front door, trim or shutters a deep shade of red or blue can help freshen up your exterior and make your property more attractive. “A thoughtfully chosen exterior can set the stage for what’s inside,” NAR writes. “Popular exterior color trends lately are leaning toward warm neutrals, moody blues and deep greens –hues that feel timeless, yet modern.”
• Update your landscaping with new plants in your garden.
• Add a colorful pot to your front step. Even a single pot can go a long way to boosting your curb appeal and helping your home stand out.
Source: https://www.nar.realtor/blogs/styled-staged-sold/from-mocha-to-mahogany-why-home-buyers-are-gravitating-toward-rich-interiors
WE LOVE YOUR REFERRALS!
Referrals from my satisfied clients are a big part of my business. If you have friends or family who are interested in buying a home, we’d love you to send them my way, so we can help them find and finance their dream home.