You have closed on a home and are ready to move in. The process involved real estate agents, home inspectors, notaries, insurance agents, and attorneys. There was a long tab of escrow, inspection fees, and closing costs and you’ve signed all of the paperwork. As you get settled into your new home, let’s look at some things to expect as a new homeowner.
Things to Expect as a New Homeowner: A Visit from Your Insurance Company
Even though they’ve already issued a policy, your homeowners insurance company may want to see the property. They will sometimes perform an assessment to look for hazards and other issues that need to be addressed.
It’s possible your insurance company will require you to fix some things for coverage to continue. In some situations, you may be able to get discounts on your homeowners insurance if you install a home security system, a monitored fire safety system, or certain types of roofing.
Your Mortgage May be Sold
Your mortgage being sold is especially common if you borrowed through a small bank. In today’s financial marketplace, it’s the larger financial institutions that hold most mortgages. If your loan is sold, you’ll get a notice and instructions on how to make payments in the future.
If you have a fixed mortgage, the interest rate will stay the same. Bigger banks have the resources to offer expanded services that may include 24/7 customer support, banking apps, easy record-keeping, and online bill pay.
Things to Expect as a New Homeowner Include Changing Property Taxes
Property taxes fluctuate each year as home values change. If you’re in an area where the value typically goes up every year, expect your taxes to increase as well.
It’s worth checking city records to see how your house is listed. Double-check the details and make sure they match your property. If the records list your home as a 4-bedroom, when there are only three, you’re paying extra taxes on a room that doesn’t exist.
Pace Yourself with Upgrades
The first time you walked through the house, you probably saw the potential for improvements. Maybe the tile needs to be replaced and the faucets in the bathroom could be updated, or you want a new sink in the kitchen. As a homeowner, it’s normal to want to make changes to your new house.
Everyone’s financial situation is different, but it’s usually smart to spread out your home improvement projects. The downpayment was likely the largest sum of money you’ve ever had, and your savings may be depleted.
Try to hold off on a massive spending spree. Give yourself some time to manage all of the new expenses. Once you’re accustomed to your regular monthly expenses as a homeowner, you can better budget for repairs and upgrades.