How To Be Prepared In Case The Housewarming Party Isn't The Only Surprise In Your New Home
North American Precis Syndicate
Although she had enough money from the sale of her first home to make a 20 percent down payment on her next one, Andrea opted to use private mortgage insurance and make a smaller down payment. She used the spare cash to build a patio and landscape her new backyard.
(NAPSI)—No matter how thorough your home inspection, the odds are
your new house will reveal a surprise shortly after you move in.
That’s why one young woman, Andrea, was prepared the second time she
bought a house. Andrea is a digital marketing manager who relocated to Wisconsin from Michigan.
Although she had enough saved from the sale of her home, she opted for a 10
percent down payment and financed with a conventional loan and private
She explained, “I wanted to have some cash on hand for unexpected
expenses. After all, if I wanted to, I could always pay down the principal on
my mortgage later with that cash.”
The inevitable “unexpected expense” was a surprising one.
Andrea closed on her house in March, and when the snow melted later that
spring, it revealed a yard completely bare of landscaping. “It never
occurred to me to ask for photos of the house from another season,” she
Consequently, Andrea used some of her cash for a retaining wall, bushes,
flowers, patio pavers, gravel and a fire pit. “It was a blessing in
disguise,” she said. “Building it up from nothing gave me the
chance to make the outdoor space completely my own and perfect for my two
Renovations were the main reason she wanted to make a smaller down
payment. It took her five months to find the 1950s ranch home of her dreams.
“It is a fixer-upper, but I am using that chunk of savings as my own
revolving line of home renovation credit,” she said.
If you’ve been planning on—or just dreaming about—buying
a new home, you can explore your options with a calculator that shows you how
much you could save (or lose), depending on how much money you put down, at mgic.com/buynow.
On the Net:North American Precis Syndicate, Inc.(NAPSI)