Real Estate Tip: Your Financial Cushion
When you calculate how much you will need to purchase a home you will add up the down payment and closing costs. It is also a good idea to leave yourself with some financial cushion to cover the incidental expenses associated with moving.
First, you will have to pay the moving company unless you can find friends with strong backs who will help you. Then many buyers plan to do some work, such as painting, replacing carpet, or refinishing floors. If you are moving into a larger space, you may find yourself making some major furniture purchases within a few months of closing.
A financial cushion is important enough that some lenders require buyers to have an amount in the bank equivalent to two or three months mortgage payments. This is especially true for buyers who are putting less than ten percent down. Your real estate agent can give you guidance. A lot depends on your overall financial situation. If your mortgage is a relatively low percentage of your monthly income, you will be able to rebuild a comfortable amount of savings in a few months.
Look for the next Real Estate Tip and other info on our Real Estate blog: www.RealtorsShortHills.blogspot.com
See Jamie and Kim's Feature Properties: www.JamieSilverman.com/myhomes.asp
The Jamie Silverman and Kim Panes Team
Weichert Realtors - Short Hills Office
505 Millburn Avenue, Short Hills, NJ 07078
Office: 973-376-4545 ext. 100
Cell: 973-632-9913 email: sjjsilver@gmail.com
Website: www.JamieSilverman.com
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