As you search for your first home, it’s easy to get caught up in heartwarming visions of the future. However, it’s crucial to make sure that you can handle the financial responsibility of owning a property. If you’re worried about how to juggle all the expenses, you’re certainly not the first. From real estate attorneys to utilities, use the following guide to set a rough budget.

A Brief Guide to Budgeting for Your First Home

Budgeting for a Mortgage

First, you’ll need to figure out how much of your regular income is spent on non-housing costs. For example, you may spend $300 on groceries every month, $250 on entertainment, and $100 on retail. Add up all these non-housing categories, including donations, utilities, transportation, and medical, and subtract them from your total monthly income.

Ideally, you should be left with more than 25% of your monthly take-home pay. While 25% can be allocated to mortgage payments, the rest should be set aside for maintenance needs, since you will be in charge of upkeep for your home.

Budgeting for Real Estate Guidance

While the above estimate is an excellent guide for your future monthly expenses, you’ll need to save up some extra money for the actual home-buying process. Your real estate agent will earn a commission on the sale from the buyer, but you may need to pay for guidance from a real estate lawyer. This professional will be paid by the hour, and can help make sure you’re getting a fair closing deal.

If you’re looking for assistance with a certain aspect of home buying, such as reviewing a contract, you can ask your real estate attorney for a flat fee. Fees will vary between regions and firms, so it’s best to shop around before adding this to your budget.

Budgeting for Utilities

When you rented properties in the past, you may have had the convenience of including utilities like heat and hot water in your monthly rent. As a homeowner, you’ll have to transition into paying all your utilities on your own. While rates vary depending on the municipality your moving to, the size of the property, and the fixtures within your home. In Massachusetts, the average electricity bill for residents is $94 a month.

You should expect to spend the most each month on electricity, and smaller amounts on water and sewage and internet and cable. While your realtor can offer insight into the average utility costs in the area, you can also ask your prospective next-door neighbor about their monthly expenses.

If you’re concerned about these and other details of the closing process, reach out to a real estate attorney at Bernardini Law P.C. They serve home buyers throughout North Andover, MA, and the surrounding areas, helping with everything from initial inspections to contract review. If there are any problems lurking inside your dream home, they can negotiate with the seller to adjust the selling price, or have the issues fixed. To learn more about their services, visit their website. You can also call (978) 794-5525 to schedule an appointment.