Nothing screams American Dream quite like buying a home. Reaching this milestone achievement is well worth patting yourself on the back for, but don’t forget to tie up all the inevitable loose ends that come after sealing the deal. Being a new homeowner is an exciting new experience that’s equally daunting if you’re equipped with the right information to make the transition into your new home a seamless one.
While there are plenty of positive surprises that come along with homeownership, it pays to be prepared for those that are costly or vital to the upkeep of your home. We’re here to provide you with 6 lessons every first-time homeowner will learn soon after buying a house and prepare you for this thrilling foray into your next step of life.
Lesson #1: There are plenty of additional hidden costs after closing on your home
Believe it or not, beyond your mortgage exists another world of satellite costs. These often forgotten costs can create an intimidatingly large sum of money that you’ll want to be prepared for shortly after closing on your home. Expect to set aside some extra cash to cover the following post-closing expenses, including:
Property taxes: Though property taxes will fluctuate from state to state and even more granularly by country, city, and home, odds are likely that the total cost of your property taxes will take up the largest chunk of your hidden expenses.
Homeowners insurance: According to PolicyGenius, the average annual homeowner’s insurance premium totals to about $1,200. Rates will vary by state and by home.
Utilities: Your utility bill will include the costs incurred from gas, water, electricity, and internet usage. A Nationwide study found that the typical American household will spend $2,060 per year on utilities.
Closing costs: Closing costs can amount to anywhere between 2%-5% of the entire cost of the home. Don’t be caught off guard when these ancillary fees need payment:
Attorney’s fees
Title insurance
Recording fees
Credit report fee
Appraisal fee
Wire transfer fee
Document prep fee
Lesson #2: Your home inspection will only tell you so much
After your offer on the house of your dream is accepted, you’ll be required to pay for a home inspection. The goal of this inspection is to examine the property’s condition, but few know that the results you may find aren’t indicative of the full story but the results will only tell you so much.
Not all inspections test for important home dangers like radon, mold or pests, so you’ll want to be fully aware of what exactly your inspection will include. Ahead of the inspection, make sure the inspector has full access to every nook and cranny inside of your home including all crawl spaces. Be sure to be present during the inspection and pay close attention to any red flags the inspector may call out.
Pro-tip: Don’t be afraid to ask your inspector questions or to request that they take a closer look at something.
Lesson #3: Invest in your safety
In the event of a flood, fire, burglary, or other types of surprise emergencies, it pays to invest in your safety. This means ensuring your smoke and carbon monoxide detectors are working, having a fire extinguisher readily accessible, and an emergency kit in an easy-to-reach location.
If you’re looking to create your own emergency safety kit, start with this comprehensive checklist
3-day supply of non-perishable food
One gallon of water per person per day
A hand-crank radio
A first-aid kit
Flashlight
Batteries
A manual can opener
Pain relief medications
Cash, preferably in small bills
Matches
Local maps
Garbage bags
Lesson #4: You’ll need to set up your new address
Settling into your new home doesn’t mean falling off the grid (unless you want it to!), so you’ll need to make sure your new address is made official. Notify your friends and family, your employer’s HR representative, and your creditors. Ultimately, you want to make sure you receive your mail, and that means taking the time to let everyone know where you’ve recently replanted.
Don’t forget to inform the U.S. Post Office, too! Setting up mail forwarding from your old home to your new home is incredibly simple and an essential step to make sure you don’t miss any snail-mail correspondence.
Lesson #5: Emergency savings are a must
Now that you’ve gone through all of the trouble of purchasing a home, setting up a separate savings account for emergencies is a great way to offer yourself some peace of mind. While nobody wants the worst to happen, it’s better for your wallet and your mind to plan for the worst—should anything happen down the road, you’ll have enough funds to cover the associated costs. We recommend putting away at least 1% of your paycheck each month you can, so you’re not in trouble if problems do pop up.
Lesson #6: Crafting a maintenance plan is important
Much like you, your house ages another year older every 12 months. Staying on top of your home’s many maintenance needs is a key piece to the puzzle of new homeownership. Among the long laundry list of things to keep in tip-top shape, here are just a few seasonal maintenance tasks that will help your home age like fine wine:
Spring
Inspect your HVAC system.
Remove any lint buildup from the clothes dryer exhaust duct.
Evaluate your roof shingles, flashing, and vents for damage.
Clean out the gutters and check for proper drainage.
Inspect all exterior faucets for leaks or damage.
Summer
Check the porch for deterioration and water damage.
Trim or remove damaged shrubbery and trees in close proximity to your home.
Inspect the foundation and crawlspace of your home for cracks.
Ensure your exterior HVAC system is well positioned away from free of growing weeds or grass.
Examine exterior siding for damage.
Fall
Shield your air-conditioning unit from rain, snow, and freeze with a waterproof cover.
Clean out the gutters.
Do a deep clean of all major kitchen appliances (i.e. oven, stove, microwave, and refrigerator).
Hire a professional chimney sweep to inspect and clean flues and vents.
Winterize your garden by bringing sensitive plants inside.
Winter
Inspect the roof, gutters, and downspouts for any damage or debris after storms.
Test your sump pump.
Check your water heater for any leaks or pressure problems.
Turn off outside hose faucets to prevent freezing as temperatures cool off.
Check the basement for any water leaks and repair as needed.
Author Bio
Samantha Rupp holds a Bachelor of Science in Business Administration. She is a contributing editor for 365businesstips.com as well as runs a personal blog, sjruppy.com. She lives in San Diego, California and enjoys spending time on the beach, reading up on current industry trends, and traveling.
