| The purchase of a new house is essentially a | | | | often a culprit in ruining the budgets of a new |
| large financial investment. As with any major | | | | homeowner. Former apartment tenants may be |
| investment, careful planning and budgeting are | | | | especially prone to overlook utility bills, because |
| required. In addition to securing a good mortgage | | | | many apartment complexes cover one or more |
| and obtaining any additional loans you may need, | | | | of these expenses. Even experienced |
| you should also prepare for any unexpected | | | | homeowners can fall victim to this pitfall, |
| expenses which may arise from owning a house. | | | | however, simply due to the fact that different |
| New homeowners tend to underestimate the true | | | | houses have different electricity, heating, and |
| cost of their new house. Mortgage and tax | | | | water requirements. For example, a house which |
| payments aside, a host of expenses can - and | | | | is poorly insulated would run up the heating bill |
| often do - crop up unexpectedly. A homeowner | | | | much faster than one which is well-insulated. A |
| who fails to adjust his or her budget to leave | | | | house with older plumbing may have leaks which |
| room for such sudden money drains can quickly | | | | affect the water bill. |
| find him or herself falling behind. | | | | Because of this, it is often a good idea to ask the |
| Moving In | | | | previous residents for several months worth of |
| So you've bought your new house, signed the | | | | utility bills. This will give you a rough estimate of |
| paperwork, and are ready to move in. | | | | how much you can expect to pay each month |
| Everything's going well - until you start to realize | | | | and allow you to prepare accordingly. |
| just how much money you are spending. The | | | | Fixing it Up |
| cost of buying furniture and decorations and | | | | Houses, both old and new, can develop problems |
| paying for delivery can add up very quickly, so be | | | | which need to be repaired. Unlike an apartment, |
| sure to account for it early on. One approach to | | | | where a broken appliance or leaky roof may be |
| doing this is to spread your purchases out over | | | | the responsibility of the landlord, a homeowner |
| several months. This way, you can "cushion" the | | | | must bear the cost of repairs on his own. Since |
| effect that they have on your budget. | | | | the very nature of these repairs means that they |
| Paying the Bills | | | | cannot be predicted, the only thing you can do is |
| Many people forget that life as a homeowner | | | | allocate a sufficient amount of money to pay for |
| involves paying a slew of bills even beyond | | | | them in case of emergency. A good rule of |
| mortgage and loan repayments. Utility bills are | | | | thumb is to set aside around $100 per month. |