Top Money Mistakes New Homeowners Make
So, now you're a homeowner! Congratulations! However, once the excitement and celebratory feelings wear off, many new homeowners are left with a “now what?” feeling. It can be scary seeing a down payment-sized chunk of money come out of your savings, and you might be feeling as if you want to fill that savings account right back up! Here’s how to take that feeling of insecurity to confidence by avoiding the money pitfalls many new homeowners buy into.
You’ve now got a mortgage, and…
First things first—you must rework your budget. You’ve now got a mortgage to cover, yes, but there are other expenses to factor in too. One is property taxes—these definitely vary depending on where you live, so figure out your options and whether it makes more sense to pay them twice a year, or budget monthly to make those payments. Also, keep in mind that tax rates can and do change (and guess which way they trend? hint: it’s not down!) Homeowner’s and hazard insurance are other budget considerations that must be examined. Do research in your area to find out what those costs mean for you.
Other hidden fees you need to add up are the costs associated with HOAs. Especially if you’ve moved into a community with shared facilitates like a pool or a health club, these fees can be pricey. Lastly, utilities are another expense that can fluctuate, especially depending on the season. Some companies offer paying a flat fee which they calculate based on the average over the year. This may be attractive as a budget-stabilizer.
Be cautious around ‘Big Box’ home improvement stores
The thrill of having a new space to call your own inspires many people to want to decorate every last square inch. Especially when we’re surrounded with social media proclaiming all the ways to DIY. Before you grab one of those extra big shopping carts, make a plan and stick to it. Know that you need to keep money aside for rainy day repairs and routine maintenance too. If your new home comes with a pool or landscaping needing regular care, that’s another expense that has to be accounted for.
Likewise, sales people at furniture stores can be very persuasive. Before you know it, you could be signing off on high interest store card loans in order to get that living room set you just had to have. In that case, you’ll be coming home with more than furniture!
If you’ve recently acquired a new home and fell victim to these mistakes, we’ve got hope for you! One great option is to look into personal loans to consolidate debt. These can be found in the form of fast loans online, or if you’re really in a pinch, payday loans and cash advances.