Smart Steps for New Homeowners
People dream of pulling into their very own garage while never having to write another rent check again. The freedom of painting the walls in your own home is exciting, but first-time homeowners can make many rookie mistakes and get into a financial mess.
May 1 is known as New Homeowner’s Day. Betenbough Homes would like to share smart steps every new homeowner should consider.
Consider Monthly Costs. You may be able afford the down payment, but don’t forget about the other expenses involved. Budget for the closing costs, mortgage, taxes, insurance, and maintenance. Create or revise your monthly budget, so you won’t have any surprises come along
Don’t Overspend on Furniture and Remodeling. Money can be tight for first-time homeowners after using a large portion of their life savings. Everyone wants to personalize their new home, but it’s not wise to improve everything all at once. Make the wise choice of rebuilding your savings before decorating your home. Use what you have until you can comfortably afford more.
Hire Qualified Contractors. Don’t try to save money when repairing your home. If you’re not confident making the repairs on your own, call a professional. The risk of making the problem worse or injuring yourself ends up costing more than the original problem. Your home is an investment, and it deserves the best care possible.
Get Help with Your Tax Return. Owning your own home usually changes most people’s tax situations and deductions for the better. Hire a professional to file your taxes, so you can make sure you’re getting the maximum refund you deserve.
Don’t Confuse Repairs with Improvements. Repairs are considered part of homeownership to preserve the value and not enhance it. For example, improvements could be adding central air conditioning, which will decrease your tax bill when you sell your home. Repairs would be plumbing malfunctions, which would decrease the value of the home.
There is great freedom when owning your own home, but keep in mind that it comes with great responsibilities. Manage your finances to be able to maintain the home’s condition. With good financial decisions, you can enjoy your home even more without the stress of bills you can’t afford.