Need tips as a first-time homeowner? Then you’ve come to the right place! Owning a home comes with great responsibilities that most first-time owners aren’t familiar with. And that’s completely normal! Every single person around the world just buying their first home is oblivious to the challenges they’re going to face since you learn each one along the way.
That’s why knowing what to expect can help you out tremendously when it comes to planning. There are many factors to take into account while moving into a new home, but you don’t have to worry since knowing these top 4 advice pieces can minimize most of your future and present worries. So without further ado, here is a list to help you out:
Before purchasing your new home first, consider paying off all your existing bank debts. Paying debts on time will help you get a high credit score that can ultimately help you with your mortgage. Plus paying off personal debt from friends and family will eliminate financial issues in the future since you won’t have to worry about unpaid debts.
Owning a home comes with great financial responsibility which is why it’s essential to not have or lessen any other ‘money issues’ while you pay off your mortgage. You can do this by monitoring your credit and budgeting your finances each month.
Slowly paying off each of your debts as soon as you can is better than paying big sums on a single payment right away. This will help you pay off all your debts slowly but surely. So before buying a home, become debt-free.
Once you become debt-free or at least have minimal debt, you can now start to plan out your budget. This will help you have a quota to follow that can prevent overspending. Plus having a planned budget will help you handle your finances better.
When setting up a budget you don’t only consider how much the house is going to cost but also the things in it as well as your other bills. Consider your furniture, monthly grocery budget, water bill, electricity bill, phone bill and so on. Once you’ve estimated all your expenses try setting a budget range.
For example, your monthly expenses are $5,111 this month and $5,300 next month so, set a budget range of $5,500 per month. Having a budget range will give you room for extra expenditures. May it be for an emergency, leisure so on and so forth. So before anything else, set a realistic budget.
There are various types of homes to choose from and various other things to consider. Picking out the right one will not only give you a perfect home suited for you but also save you money from unnecessary spending. So when you’re house hunting consider these things:
- The space – For homeowners that live alone or have partners, getting a studio or a one-bedroom place is best. For homeowners with 3-4 family members, it’s best to consider a 2 to 3-bedroom place. Picking out the right space will prevent you from getting homes that are too big or too small.
- The amenities – If you have a car, it’s best to look for a place that offers its own designated parking space. This will prevent you from renting a car space at the same time keep your car safe.
- The price – Of course, the price plays an important role when it comes to choosing your home. Look for a place that falls right within your budget range. And if you’re considering going off budget make sure the place has all the things on your checklist.
- The proximity – Another deal breaker is proximity. Look for a place that’s near work, your children’s school and also near essential establishments like groceries, markets, hospitals and so on. Getting a place far from everything will not only cost you money on transportation but also time and effort.
Another essential thing to consider is getting your home insured. This will keep you covered when unexpected disasters happen such as house fires, floods, typhoons, leakage and so much more. Plus to get the most out of your insurance policy consider hiring an Insurance broker to help you know everything about the coverage you’re getting such as what it covers, its extra benefits, eligibility scope and so on.
A lot of people take this insurance policy for granted since tragedies don’t happen to everyone and it doesn’t arise often. But the problem with catastrophes is that they typically happen without warning and can occur at any time of day or night, seven days a week. Additionally, you won’t be able to predict the percentage of damage. So it’s best to ensure your homes in case of tragedies.