Escrow has closed, the house is in your name, and the need for moving is finally over. While feeling like the home buying procedure is behind you, it isn’t. Now comes the barrage of mailers, solicitations, and luring offers geared toward new property owners, who are typically trying to repair their finances.
Of course there are the well-known things: like staying on top of your current mortgage payments; trying to avoid any key purchases, like a new car or truck; and making sure you have adequate homeowners insurance.
Top Nine Things to do After Purchasing a Home
Preserve your savings and restrict the spending:
It’s hard to resist the attraction to splurge after buying a new home. You’ll feel the craving to buy new furniture, substitute those outdated fixtures and also decorate the house in your style. You probably will already feel your budget has tightened because of your new mortgage payments, consequently you’ll want to slow your spending for various housewares and remodeling. Also, attempt to refrain from using credit cards. This only brings you a high interest rate and monetarily trapped into a situation of trying to repay your debt. Keep your long term financial targets like retirement in mind.
Consider having the lender automatically debit your mortgage payments. This will make certain you never pay late, that may tack on an extra 5 percent late payment fee. Late payments will also scar your credit report.
Repair any emergency reserves you have depleted:
If you used your own emergency funds to help pay the down payment, now’s the time to start stashing away your money. You should have at least 3-6 months wage or at least bills in your account. Try to stay away from unnecessary spending until you arrive at your goal.
Ignore all solicitations for mortgage insurance:
Some of the solicitations that will be clogging up your mailbox will likely be offers regarding mortgage life and incapacity insurance. Most of these policies are very blatantly overpriced and don’t provide the correct quantity of benefits.
Don’t be tempted by companies offering to expedite your mortgage reduction:
This particular offer involves turning your 12 monthly payments into Twenty six biweekly payments, so you’ll be creating an extra payment every year. One of several problems with this is that there’s a cost for their service, and it’s probably not in your best interest. Your extra money is usually be better off invested or settling other debts. You also don’t wish to leave yourself lacking required cash.
Research your tax assessment:
If homes have dropped in your neighborhood considering that you’ve moved in, you may want to consider appealing your examination since the tax is based on the home’s value in most residential areas.
Consider refinancing the mortgage:
If current interest rates go down, think about taking a new loan at the lower interest rate to replace your original bank loan. Be sure to consider how much refinancing the loan will cost you. (Out of pocket and during the life of the loan.) Refinancing will not benefit you unless you plan on staying for at least five years.
Maintain your receipts:
If you do any home improvement projects, keep your receipts. You may well be eligible to minimize the capital gain that may come your way when you sell your home. The improvement must be one that permanently increases the value of the house and are useful through the life of the house, like a roof.
Ignore solicitations for you to homestead:
One thing I want to point out is how the second you buy a home it is made public record and companies will use those records to solicit you. Some companies may offer to protect your current home’s equity from litigation for a price of $50 or $100. This can be something you can do yourself if you are living in a state where you need to take actions to secure your homestead dispense. Just call your County Recorder’s Office to learn how.
Enjoy your New Home:
Don’t be a shut-in and get so caught up in working, keeping your residence in order, and spending on property enhancements that you don’t have the time or the vitality to enjoy it!