Owning your first home is an exciting time and one full of new opportunities and responsibilities. Your home is one of the biggest responsibilities you will have in your lifetime!
At Smartmortgage.com, we want you to be a successful homeowner, so here’s some advice on how can you succeed in your first year of homeownership.
Avoid making large lifestyle changes for nowNow that you have bought a home, it is time to settle down for a bit and avoid major lifestyle changes, like changing your job. This is especially important if your final loan has been approved before you officially closed, as your lender will check to verify that your employment and income hasn’t changed before closing.
That little drip in the faucet may not seem like a big deal now, but it is important to get small problems fixed before they become a larger problem down the road. Not only will they be easier to fix when they are small, but save you a lot of time and money in the long run.
Emergencies happen and are usually unexpected, so it is best to be prepared. Unfortunately, many first-year homeowners do not maintain a safety net, which will help you pay for bills in an emergency and not drain your savings in the meantime. It is recommended that you have at least three months of emergency savings.
Even home insurance can’t cover every scenario, so it is good to be prepared.
Be it banking records, receipts from a home repair, or a bill from your water company, keep your receipts and documents accurate. This is essential if you need to make an insurance claim if something was stolen or you want to refinance your home in a few years.
Keep a file system for all bills, receipts and other important documents so they are easy to find. You may also want to consider a fire- and water-proof lock box for papers like birth certificates, marriage licenses, and home closing documents.
One of the many perks of being a homeowner is the tax breaks available to you. You can take a mortgage interest deduction to deduct the interest you have paid on your home loan, among others. For example, mortgage interest credit gives you up to $2,000 in tax credits.
The Mortgage Credit Certificate Tax Credit will vary considerably depending on the MCC Program, state, county, or city and the amount of the homebuyer’s loan, their interest rate and the term of the loan.
Not sure what breaks you qualify for? Ask your tax or financial advisor and they will be more than happy to help.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
