First-time buyers
5 min read
Your first year as a homeowner: what to budget for
Costs that show up after closing, from repairs to the first property tax bill.
Closing day is the end of one budget and the start of another. The first year often brings costs that did not appear in your payment estimate.
Plan for upkeep
Set aside a monthly amount for repairs and maintenance. Many owners plan for around 1% of the home’s value each year, though older homes may need more. A small, regular amount is easier to handle than a surprise bill.
Expect changes in taxes and insurance
Property taxes can be reassessed after a sale, and insurance premiums can change at renewal. If these costs are paid through escrow, your monthly payment may be adjusted. Your lender will send a notice before any change.
Keep an emergency fund separate from your repair budget, and keep your loan paperwork in one place. If your plans change, talk to your loan officer early.
Planner figures are illustrative only and are not an offer or a commitment to lend.
Rates and figures are illustrative, not a rate quote, loan offer or commitment to lend. A pre-approval is not a commitment to lend.
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