New Homeowner’s Financial Guide
Buying your first home can be a very exciting time. However, between turning your house into a home, and new monthly expenses, it is important to keep your finances in check. Keep a level head about your bills with these financial tips for new homeowners.
Creating a Dream Home Takes Time
With the initial down payment, closing costs and moving expenses, a large portion of your funds will walk out of the door the minute you walk across the threshold. That being said, do not rush to remodel your home, unless you purchased it with the intention to upgrade some of its amenities.
A dream home does not happen overnight and with increased monthly expenses, it is often financially better to hold off on major renovations for a less stressful time.
Start with the little things: DIY projects, such as reupholstering the couch, which will keep your furniture from feeling old. Plus, that sofa you’ve been eyeing will probably be on sale in a few months.
Don't Neglect Maintenance Issues
Budget for important repairs as needed, especially ones that are potentially dangerous to you, or can become severe problems over time. Home inspections when closing will help identify the potential maintenance issues and can leave you, as the homebuyer, with some points to work into your closing cost.
Take advantage of discounted premiums by combining home and auto insurances. Speak to your current provider about combined coverage, or shop around if the price isn’t right.
When it does come time to upgrade your home’s appliances, consider energy efficient products. Energy efficient appliances can significantly reduce your monthly expenses as well as reduce your carbon footprint.
An added benefit of having a TotalProtect Home Warranty is the Appliance Buyline, which links you to members-only savings on new appliances and installation.
Get Tax Help
In addition to increased monthly expenses, determining your tax liability is an important first for new homeowners. A challenging portion of filing taxes as a new homeowner is the itemized deductions such as mortgage interest, property tax, and mortgage insurance as well as charitable contributions from donations of old clothes and furniture to charity.
Don’t Forget the Home Warranty
While homeowners insurance protects you from disasters, fire and theft, adding a TotalProtect Home Warranty will give you extra protection. Safeguard your budget against unexpected appliance and systems breakdowns, which can be expensive and aren’t covered by your insurance policy.
The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.