The  monthly mortgage is only part of the expenses of owning a home. and utility payments, and can create financial problems, particularly for the  first-time home buyer who has little cash reserves. Problems with the  plumbing, electrical and heating systems seem to occur at the wrong times, and they need immediate attention  If you have purchased an older home, complete replacement of water heaters, furnaces or kitchen appliances may be required.. Draw up a budget before beginning your search for a home, making allowances for such expenditures. If you haven't,  then it's  time  you begin to accumulate adequate reserves to deal with such emergencies.

In a newer property, your immediate expenses may be confined to landscaping, interior decoration and furnishings. Normally  , mechanical items and appliances will be under warranty will not require major expenditures, but may need minor repairs.

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In an older property, replacement of major items can be very expensive. You should  determine the age of the furnace, hot water heater, air conditioning system, kitchen appliances and the roof. Your home inspector's report may have noted the ages o f these major items. If they are older then half their expected useful life, you will need to plan for the costs of the replacement.

Your budget should include both regular maintenance and major repairs. Establish an emergency fund for repairs and appliance replacement. Know what sources of financing are open to you when a major item such as the roof or heating system has to be
replaced. These are things that can cost thousands of dollars and you may have to finance them through a home equity loan, a second mortgage or an instalment loan. Determine which kind of loan you are likely to qualify for, the pros and cons of the alternatives and have a plan for dealing with a major expense.

Your budget should also include a reserve for making your mortgage payments in the event of illness or loss of income in the future.

Although  budgeting for  unexpected repair bills may make keeping up your house payments difficult, the primary causes of foreclosure and bankruptcy are unanticipated personal crisis. More homeowners lose their homes because of illness, loss of employment or marital problems than all other reasons combined.

Not all  of us factor these possible events into our plans for the future, but you should think about some of your alternatives if you find yourself in such a position. It is much easier to look at alternatives and plan an effective course of action before you are in trouble and in a state of anxiety and stress.

Sometimes you can anticipate trouble coming before financial problems begin. A  notice of a layoff means the family income will be severely cut back or eliminated in the near future. A major repair bill or operation may be more than you can afford to repay, even with a short term loan. You have to address the situation as soon as possible or risk losing your home.

There can be a number of local sources that can help you get over the hump. Civic groups may have assistance programs or may know what is available. Housing assistance groups or counselling agencies, ma y manage special assistance programs. State and local housing agencies are also places to inquire to help.