Dream Lands Design
  • Home Improvement
    • DIY
    • Remodeling
    • Woodworking
    • Accessories
    • Home Design
      • Furniture
      • Organize
      • Tips
      • Decor
        • Interior
        • Exterior
  • Design Ideas
    • Bathroom
    • Bedroom
    • Dining Room
    • Living Room
    • Kitchen
  • Gardening
    • Backyard
    • Front Yard
    • Landscaping
  • Home Improvement
    • DIY
    • Remodeling
    • Woodworking
    • Accessories
    • Home Design
      • Furniture
      • Organize
      • Tips
      • Decor
        • Interior
        • Exterior
  • Design Ideas
    • Bathroom
    • Bedroom
    • Dining Room
    • Living Room
    • Kitchen
  • Gardening
    • Backyard
    • Front Yard
    • Landscaping

Categories

  • Accessories
  • Backyard
  • Bathroom
  • Beauty
  • Bedroom
  • Cars
  • Decor
  • Design Ideas
  • Dining Room
  • DIY
  • Entertaining
  • Exterior
  • Finance
  • Front Yard
  • Furniture
  • Gardening
  • Green Living
  • Home Design
  • Home Improvement
  • Interior
  • Kitchen
  • Landscaping
  • Lifestyle
  • Living
  • Living Room
  • Organize
  • Photography
  • Real Estate
  • Remodeling
  • Tips
  • Uncategorized
  • Wall Improvement
  • Woodworking

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Sitemap
  • Contact Us
29K
98K
0
Dream Lands Design
  • Home Improvement
    • DIY
    • Remodeling
    • Woodworking
    • Accessories
    • Home Design
      • Furniture
      • Organize
      • Tips
      • Decor
        • Interior
        • Exterior
  • Design Ideas
    • Bathroom
    • Bedroom
    • Dining Room
    • Living Room
    • Kitchen
  • Gardening
    • Backyard
    • Front Yard
    • Landscaping
featured image - 8 Secrets of New Home Ownership That No One Tells You
You're here: Home Home Improvement 8 Secrets of New Home Ownership That No One Tells You

8 Secrets of New Home Ownership That No One Tells You

  • Perla Irish
  • February 11, 2021
Total
1
Shares
0
0
1
0
0
Table of Contents Hide
  1. 1. Truth About Downpayments
  2. 2. Dangers of Overspending
  3. 3. New Bills
  4. 4. Unexpected Moving Costs
  5. 5. Realistic Furniture Budgets
  6. 6. Insurance Responsibilities
  7. 7. Funding Emergencies and Maintenance
  8. 8. Why School Districts Matter
  9. New Home Ownership Checklist

Are interest rates still low in the housing market?

While interest rates are starting to rise back up, they’re still historically low. On average, you can get an interest rate as low as 2.901% for a 30-year fixed-rate mortgage.

image - 8 Secrets of New Home Ownership That No One Tells You
8 Secrets of New Home Ownership That No One Tells You

However, qualifying for a mortgage doesn’t automatically mean you’re prepared to buy a home.

If you’re thinking about buying a house, this home buyer’s guide is for you. In this article, we’ll tell you the truth about what new homeownership is like.

From navigating down payments to creating a new monthly budget, we’ll cover everything you need to know before you start bidding on homes.

Read on to learn how to prepare to be a new homeowner.

1. Truth About Downpayments

Let’s start by talking about making down payments to purchase a new home. In the past, you’ve probably heard that you have to put down a 20% down payment on your home mortgage.

However, the old 20% downpayment rule is no longer true.

Instead, the minimum down payment for a home will depend on the type of loan you’re getting. You can click here to explore the different types of mortgages.

If you go with a conventional loan, you can enjoy especially low down payment amounts.

2. Dangers of Overspending

As a first-time homebuyer, it can be tempting to max out your homebuying budget. However, if you spend too much paying for your house, you’ll wind up unprepared for the responsibilities of new homeownership.

You also have to consider unforeseen life events, such as losing your job or growing your family.

Keep in mind that the amount you’re preapproved for isn’t the budget you should set. You could be preapproved for a $500,000 house, but that doesn’t mean you should get a house in that price range.

Instead, take into account the full scope of your monthly expenses when your setting a home buying budget. You should also consider how your monthly expenses will rise once you become a homeowner.


Read Also:

  • Everything You Need to Know Before Buying Your First Home
  • The True Cost of Home Ownership: Expectation vs. Reality
  • 8 Mistakes People Make When Buying Furniture
  • 4 Things to Consider When Buying a New Home
  • Minimalistic Home Ownership in 2021

3. New Bills

What type of new bills can you expect as a homeowner? For starters, you’ll have your monthly mortgage payment, along with private mortgage insurance fees.

Are you moving into a larger home? Gas, water, and electric costs can skyrocket when you go from a small living space to a large home.

Next, consider other expenses such as sanitation, cable, and phone services. Are you going to get a security system for your house? If yes, you should budget for a monthly monitoring service.

Finally, take into account what it’ll cost to maintain your home. For instance, lawn care can quickly become a financial burden if you don’t plan ahead.

Mowing, weeding, planting, and more, it’s easy for your lawn to drain your bank account. To avoid straining your finances, create a realistic lawn care budget before you buy your home.

4. Unexpected Moving Costs

Moving on, it’s common for the new homeowner to overlook costs associated with moving. If you have a lot of belongings, we find it’s best to hire professional movers.

While professional movers will cost more than doing things yourself, they can wind up saving you countless hours.

If you do hire movers, make sure you purchase the moving insurance plans they offer. The last thing you want is to rack up more expenses because something breaks during the move.

5. Realistic Furniture Budgets

Buying a new home can seem like the perfect time to invest in new furniture. However, considering all of the new expenses you’ll be incurring, your furniture budget might not be as big as you think.

The good news is that you can still have the furniture of your dreams, as long as you’re willing to do a little bit of bargain hunting.

Frequent online community marketplaces where people post furniture for sale. Buying slightly used furniture can help you save thousands in the long-run, and you’ll also be able to afford pieces you otherwise couldn’t.

6. Insurance Responsibilities

If you’ve never owned a home before then get ready to spend a lot of time learning about home insurance. Home insurance is unlike any other type of insurance policy you’ve ever had.

Rather than covering the cost of what you paid for your home, your coverages will account for the amount it’d cost to rebuild your home.

As a result, policy prices can vary greatly depending on the details of your home’s construction. You’ll also have to request and pay for specific endorsements if you want to cover specific valuable items, like art or jewellery.

7. Funding Emergencies and Maintenance

Emergencies happen all the time when you own a home. Whether the water heater breaks or the plumbing starts acting up, you have to be financially prepared.

Plan on setting aside money from every paycheck so you’ll be ready when disaster strikes. The good news is that a lot of the emergencies homeowners experience are preventable with eh right maintenance plan.

Create a maintenance plan that covers every aspect of your home. For instance, your air conditioning unity, roof, siding, and septic pump are all things you should be checking up on regularly.

If you notice an issue with any area of your house, don’t wait to address it. Failing to promptly repair something small can lead to major damages down the road.

8. Why School Districts Matter

Before you buy your home, find out what the school district’s like. Both parent and non-parent homeowners can benefit from a quality school district.

You’ll wind up paying more to live in a good school district. However, if you ever decide to sell your home, being in a preferred school zone will help increase your resale value.

New Home Ownership Checklist

Now you know the truth about new homeownership and the unexpected costs that come with it. If you haven’t already gone through the preapproval process, reach out to a mortgage broker today.

Once you find out the amount you qualify for, sit down and create a realistic budget.

Determine how much you can comfortably spend on a mortgage each month, while still being able to care for your home.

Last but not least, decide how much money you can set aside each month for your emergency fund. For more tips like these, read another article.

Total
1
Shares
Share 0
Tweet 0
Pin it 1
Share 0
Share 0
Related Topics
  • budgets
  • furniture
  • home
  • house
  • insurance
  • maintenance

Subscribe

Subscribe now to our newsletter

You May Also Like
featured image - 6 Signs Your Digital Marketing Strategy Is Not Working
View Post

6 Signs Your Digital Marketing Strategy Is Not Working

  • February 5, 2023
Featured image - How to Choose the Right Paint for Your Home
View Post

How to Choose the Right Paint for Your Home

  • February 4, 2023
Featured image - What You Need to Know About Refinancing Your House
View Post

What You Need to Know About Refinancing Your House

  • February 2, 2023
Featured image - 3 Constructive Hiring Trends for Construction Managers to Try in 2023
View Post

3 Constructive Hiring Trends for Construction Managers to Try in 2023

  • February 2, 2023
Featured image - Pros of Using Cordless Vacuum Cleaner for Hardwood Floors
View Post

Pros of Using Cordless Vacuum Cleaner for Hardwood Floors

  • February 2, 2023
featured image - Create Your Sanctuary
View Post

Create Your Sanctuary

  • February 1, 2023
Fetured image - 8 Things You Can Expect When Moving to Texas
View Post

8 Things You Can Expect When Moving to Texas

  • February 1, 2023
featured image - How To Make Luxurious Bathroom Traits of James Martin Malibu Vanity 72″ Model 2023
View Post

How To Make Luxurious Bathroom: Traits of James Martin Malibu Vanity 72″ Model 2023

  • February 1, 2023
Dream Lands Design
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Sitemap
  • Contact Us

Input your search keywords and press Enter.

Add Dream Lands Design to your Homescreen!

Add