Your first priority as a new homeowner is to start setting aside money for future repairs. This should be disposable cash that you earn in addition to your retirement savings, and these savings should only be used for major repairs and similar expenses. Beyond building up a substantial savings account, there are a few more essential money moves for homeowners.
Make Extra Mortgage Payments
Discuss the matter with your lender before making any supplemental payments on your home loan. You’ll want to make sure the payments will be applied to the principal and that you won’t be charged a prepayment penalty. If your lender offers favorable terms, making a few extra payments per year will reduce your interest and help you pay off your home sooner.
You Can Never Have Too Much Insurance
Your mortgage lender will require you to maintain a homeowner’s insurance policy, but this is something it’s wise to do anyway. Your policy will protect your home and personal belongings against damage. You’ll also get liability protection in the event that someone is injured on your property. Suppose you live in a tropical area, northern region, or another area that’s frequently subjected to harsh environmental conditions. In that case, you may also want to get additional coverage for those types of damages.
Don’t Forget About Home Security
The use of smart home technology and home security technology will help you protect against break-ins and other criminal threats. A home security monitoring system will also send help faster when there’s a fire or medical emergency. Additionally, most insurance providers will offer a discount on your premiums for maintaining a qualifying security system.
This is also the time to start thinking about the future. If you plan to have children, determine if there will be enough room for them. If not, you may need to add to your home or consider buying a larger home a few years down the road. Added to those expenses are those related to healthcare, education, and living expenses for each of your children. Start saving now to help yourself be more prepared when you do start growing your family.