Steps Every New Home Owner Should Take
There is a lot of excitement when someone goes from a renter to a first-time home owner. However, getting swept by this excitement can lead to homeowners to jeopardize everything if they don’t keep these steps in mind.
- Don’t Overspend to Personalize -As you have already paid a lot of money for the down payment, closing costs and moving expenses, money is tight for first time homeowners. Not only are savings depleted but monthly expenses also go higher as new expenses from home ownership include water and electricity bills and extra insurance. Everyone wants to personalize a new home and upgrade what may have been a temporary apartment furniture for something better, but do not spend all the money at once. As nice as a solid maple kitchen cabinet might be, they are not worth jeopardizing your new status as a home owner. Give yourself time to adjust to the new expenses of home ownership and slowly start building your savings-the cabinets will be waiting for you when you can comfortably afford them.
- Don’t ignore important Maintenance-One of the new expenses that accompany home ownership is making repairs. There is no landlord to call if your roof is leaking or the toilet is clogged. On the bright side, there is also no random note informing you about a rent increase on a Friday morning. You should restrain yourself from purchasing the nonessentials but you should not neglect any problem that puts you in danger or can get worse with time.
- Hire qualified contractors -Do not try to save money by making improvements and repairs by yourself unless you are a 100% sure you can do it. It can lead to a bigger damage or can even hurt you. Your home is the place where you live and invest. It deserves care and attention that you would give to anything with a high value. There is nothing wrong with painting the walls by yourself, however if there is a wiring change then hiring a qualified worker is necessary. Also, before making any changes it is necessary to ask permits from the authority.
- Get Help With Your Tax Return– Even if you hate spending money on an accountant and do the tax returns yourself, hiring an accountant to make sure you have returned the loans, taxes etc correctly is a good idea. Homeownership usually changes the types and amount of taxes to be paid and deductions that you can claim. After you are comfortable and informed about the various taxes you can leave the accountant and pay for them yourself.
- Get Properly Insured- Your mortgage lender requires you to purchase homeowners insurance and to purchase enough to fully replace the property if there is a total loss. If your share your home with anyone who relies on your income to pay the mortgage, you will be needing life insurance with that person named as a beneficiary so they won’t lose the house if something happens to you.
With the great freedom of owning your own home comes great responsibilities. You must manage your finances well to keep the house and keep the house maintained enough to protect your investment and keep your family safe.