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Monday, September 4, 2017

You're A New Homeowner! Now What?


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YOU'RE A NEW HOME OWNER - NOW WHAT?

Congratulations on your recent home purchase! Now, you can focus on settling into your new home, including the following tips to help make you feel more secure in home ownership.

1. Continue Growing Your Savings: Although this seems obvious, it can get a bit lost in the shuffle of buying your new home. There will be some additional costs that come with buying a new home, like decorating or remodeling. Be sure to set a budget, stick to it, and include a monthly savings goal that is realistic. If in a relationship, include your significant other in the budget and discussion of a monthly savings goal. It will take two to stick with it.

2. Start a “Rainy Day” Fund: Home ownership can have surprise expenses, such as roof repair or A/C replacement. Having a fund set aside will better prepare you for any unexpected costs that may arise, as well as prevent additional unnecessary stress that home repairs can create when you don’t have the budget to fix them.

3. Try to Pay a Little Extra on Your Mortgage: Assuming you haven’t overextended yourself with your new mortgage payment, review your budget and see if you can afford to pay a little extra each month toward your mortgage payment. The extra payments really do add up.

For example, take a $200,000 mortgage on a 30-year loan at an interest rate of 5% with the standard 12 payments a year. If the homeowner can afford to pay the equivalent of 13 months of payments in a one year timeframe, the loan will be completely paid off in 26 years and the owner will save $32,699 in interest. The dollars truly do add up over time. To make it easy, set up the additional payment as an auto-payment on the loan. With each additional dollar you pay over the minimum, you will be taking time off the backend of the loan and saving substantial dollars that would normally go to pay interest over time.

4. Keep Up on Your Home Maintenance: The best way to avoid unexpected repairs to your home is to keep up on routine maintenance. Preventative care for your home will better ensure that you avoid dipping into your emergency account. Such maintenance includes blowing out your sprinklers before winter or cleaning out your rain gutters and rerouting rain water to ensure water flows from your roof into the gutters and away from your home’s foundation. If any problems do arise, repair them sooner rather than later or they may turn into a bigger issue.

5. Be Confident in Your Purchase: Regardless of what you paid and, even more so, what the housing market is doing, be confident in your recent home purchase. It can be easy to continue focusing on the housing market since you just closed on your home. Until you are ready to sell your home, don’t worry about the housing market - it will continue to rise and fall. Remember, you will gain equity in your home over time, not immediately. You made a sound decision to purchase your home and you should be focused on enjoying that experience.

In summary, the home buying process can be all-consuming. Often times, the above simple tips are not thought of, but can greatly increase a buyer’s immediate and long-term happiness with the purchase. Be sure to share these tips with friends and family who may be going through the buying process or who have just moved into their new home. And, if you have any questions about the buying process or loan process, be sure to reach out. We have experienced, educated Agents and Lenders who can help.  
801.478.4545 


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