What you will need… and need to do…..

Purchasing a home is probably the most expensive thing you’ll buy in your lifetime.  So you want to get it right.  You may, and probably will, sell the home and buy another although some really do stay in their first home for their lifetime. So…..

You will need 20% of the price of the home for the down payment… anything less will mean that you will pay a monthly premium for mortgage insurance (so better to put it towards your principal).  If you put down less than the 20%, the mortgage insurance premiums are paid until you’ve reached that 20% figure.

You will need closing costs…. this is a few to several thousands of dollars depending on the cost of the home.  This covers a home inspection (to your advantage), because they can usually find a problem or potential problem that alerts you to costs of repairs down the road. The closing costs also cover Registry of Deeds cost, as well as lawyer fees (a reputable lawyer will see that things are done right).  At the time of closing tell the lawyer that you want a Homestead Act in place….. this is a document that for the cost of about $35. – $50., your home will be protected from anyone trying to sue you. It’s an imperative, yet inexpensive document to get and keep in a safe place.

You should also have about $1,000. and up for redecorating or repairs and yard equipment such as a lawnmower, snow shovels etc.  After all, you want to keep your curbside appeal.

The best thing is to stay in your home for at least 5 years before you should move again, as  relocating and starting over is costly.

You should also have a lawyer draw up a Revocable Real Estate Trust.  No one has a crystal ball to the future and anything can happen at any time, so be prepared….

A Revocable Real Estate Trust will, should anything happen to you, allow the home to transfer smoothly and privately, without going through Probate, to whoever you choose and name in the Trust. This will cost less than $1,000. and it will give you peace of mind.