Where does the money come from after a home purchase to buy furniture and updates, etc?

Question

We have bought a home but we also need new furnishings. What should we do? We close in two weeks.

Answer 1

From your savings.  When buying a house, you should NEVER EVER buy one without enough savings for downpayment, closing closts, any new furnishings for the home, and still have 6 months of living expenses left in the savings account.

I hate to be brutally honest but don't be suprised if you end up having your home foreclosed on down the road.  It is people who are in your EXACT same situation who are currently losing their homes.  Lenders don't look at your ability to afford the home, which in your case is non-existant.  Thank God that will change in October.

Answer 2

Whatever you do...DO NOT OPEN ANY NEW CREDIT LINES!!!!  I've seen people in your situation go out and open a sears card, or home depot card, or target account and then not be able to  qualify for the loan because of the drop in credit score that happens when you take on new debt.

If you don't have enough savings for the furniture, you may want to make due with what you currently have.  If you're currently renting, maybe you can use your security deposit refund to buy some things after you've moved in.

Answer 3

yard sales are a good idea

Answer 4

Make do with what you have.  Buy used and wait till you save enough to buy new.

People tend to over extend their finances just to buy the house and if you add credit purchases of new furnishings on top, you will find yourself in financial trouble.

Answer 5

You're kidding right?

First, you WANT new furnishings, you DON'T NEED THEM.

2nd, they come from savings.  2 years ago you doubled your income.  What happen to all this money?????

If you don't have the money, you can't afford it.

Answer 6

WAIT.

SAVE.

Don't overextend yourself

Make do with what you have, buy what you need from Goodwill or Salvation Army, then gradually, as you save up money, buy other new furnishings you need

Buying a new house, then buying new furnishings on credit is a HUGE mistake many first-time homebuyers make.  You are home owners---Rejoice!  But don't become debtors on the road to bankruptcy or foreclosure.

Answer 7

We bought a new place - and although we had some savings, we didn't have extra expendable income for furnishings. We made do with what we had, went to garage sales, etc. When we were able to financed a couch, happily getting rid of the old one. The biggest trick is not to overextend yourself. We financed the couch only when we knew we were able to afford to. We've been at our place for a year and consistently make payments on time (and paying extra), and have no issues. The first few months we were tight and cut out all but the absolute expenses, but as we adjusted we have been able to bring back an occasional trip to the beach or night out without feeling trapped or any worries about foreclosures. In fact we are better off financially because we took a hard look at our budget and cut out the over frills.

Take a couple months so you get a base line on how much your water, sewer, electric, and other utilities are going to cost from month to month, and then consider furniture, etc later.