Buying a new home in Park City, UT is not an easy endeavor, particularly if you are new to the home buying experience. There will most likely be unexpected costs and a lot of planning, searching, researching and paperwork.
The first thing on your agenda should be to determine how much house you can afford. If you buy a house beyond your projected budget, you could be damaging your financial future. You could be making it hard to save for retirement or your children’s school funds or even taking vacations if all your money is tied up in mortgage loans and housing taxes. What you can buy will depend on how much you can afford on down payments and closing costs, plus how much a mortgage company is willing to loan you.
Never forget about closing costs. These costs include:
- Escrow fees
- Homeowners insurance
- Title insurance
- Property tax
- Legal fees
- Private mortgage insurance
- Prepaid loan interest
- Courier fees
Based on this information, plus information on the house price, mortgage loan and monthly payments, plus taxes, determine how much you can afford per month and how much you can save for down payments and closing costs. Putting it all out on a paper or a spreadsheet, go through your financial situation and determine how much you will have left over. Don’t forget you will have (based on where you live and the home you purchase) utilities, hot water, heat and more.
Don’t get in over your head when buying a home. You want to enjoy your home, not sink in it. A good Park City real estate agent or broker can help you figure out what you can afford.