7 Tips for New Homeowners
Have you recently bought your first home? Check out these seven tips for new homeowners that are sure to save you stress down the road.
Every year, more than 5.5 million homes sell on the market in the United States.
If you want to become one of the many new homeowners this year, there are some tips that will make your journey easier. Buying a home for the first time can be a daunting, overwhelming proposition. Don’t let stress and worry eat away the wonder and joy that comes with owning your first home.
Here are seven tips for anyone who wants to own their own home.
1. Adjust To New Expenses
Owning a house comes with a lot of expenses that you have to pay for. You’ve just spent a large amount on a downpayment, closing costs, or other real estate related expenses. Those aren’t the only things that are going to be taking your money now that you have your own home.
You won’t have to pay rent, but buying a house means the monthly mortgage payment will be coming. As will insurance costs, taxes, and other expenses you may have never had before. Give yourself some time to adjust to the sudden expenses, don’t start spending all of your money as soon as you move into your house.
It may seem like a good idea, but you can always pick up more furniture or decorations later. For the first few months of ownership don’t worry about getting anything nice or new. Watch how your expenses impact your income and then decide what you can and can’t afford.
2. Repairs and Improvements
For most people, their new home will require some repairs and they may want to make some improvements. First, focus on the repairs that are at hand. If you don’t, repairs can pile up and the cost of completing all of the repairs can get out of hand.
There will be time for improvements later, like new cabinets, rewiring rooms, etc. The only time you should pursue an improvement right after buying a house is if it would save you money on a repair. Otherwise, make sure to focus on what needs to get done so that you can live in comfort.
3. Study Your Insurance Options
You have to have insurance to get a mortgage, but what is required may not be all that you need. You will need additional insurance, many people like to focus on products that will help them keep their homes. These include things like disability-income insurance and umbrella policies that cover liability.
Having the right insurance can make a huge difference if something unexpected happens. Make sure that everything is set up to benefit your family should something happen to you. It may be a pain, but some of the expenses associated with homeownership can be very large, so make sure you’re covered.
4. DIY Vs. Hiring Contractors
Now that you own your first house you are free to do a lot more with it than any rental would allow. Don’t overlook the value of using professional contractors to get work and repairs done. Using a professional can save you a lot of money and time in the long run.
Doing some things yourself is fine, but make sure they fall within the work you are comfortable doing. Don’t do anything you’re not comfortable with, it isn’t worth the risk. Accidental damage to your home, or health, is possible with many home improvements and repair projects.
Contractors not only have the tools and expertise to get the job done but they are also insured. If something happens while they’re working on your home, you won’t have to pay for their mistake. They are covered and therefore so is your home and investment.
5. Stick To A Budget
Set aside a set amount of money for repairs and personalizing your new home. Make that amount of money your budget and don’t add more to it. You can adjust the budget for improvements and decoration as you live in and adjust to your first home.
Overspending can lead to a financial disaster if you’re not careful, and it is easy to overspend when making improvements and repairs to your home. If you are undertaking some improvements, make sure to save the receipts they will come in handy during tax time.
6. Home And Appliance Warranty
If you are going to pay for a home warranty make sure that you understand what it does and does not cover. A lot of homeowners may purchase coverage but then find themselves out of a service area or too far from any contractors. This will waste the money that you have invested.
Other homeowners may find that having a home warranty saves them a ton of money. The key is to read the fine print and to know the area that you live in. You don’t want to waste money, so make sure you get a home warranty that will work for you.
7. Be Aware Of An HOA
If you purchased a home in an area with an HOA, you need to understand all that entails. Read the bylaws of the HOA and if necessary before you buy the home have a lawyer look over the document. This will help to protect you, but once you have the home you have to follow the rules.
Not abiding by an HOA can bring a ton of problems to your doorstep and that could include fines. Make sure that you stay in compliance with your HOA because many won’t cut any slack to new homeowners. Following the rules and building relationships with your neighbors is a great start for a first-time homeowner.
New Homeowners
This is an exciting time in your life when you've joined the ranks of new homeowners. You have made a major commitment to your future and the stability of your life. For many, having a home is a dream come true, one that they’ve been thinking about since childhood. No matter where you fall on that spectrum, a bit of caution and care will go a long way.
If you have any questions, please contact us. We would love to help you find the new home of your dreams.