The American dream often includes buying a home and raising a family, but few new homeowners are ready for the realities of owning real estate. This article discusses things to expect as a new homeowner. Some of these items might surprise you.
1. Maintenance Issues to Expect as a New Homeowner
Expect as a new homeowner to encounter some maintenance problems. Before you closed on the home, you probably got a home inspection report that provided a thorough assessment of the house. While you may have negotiated with the seller about serious issues, there were likely small issues in the report that you accepted as-is. If the home is older, you will have maintenance issues that arise like a leaky faucet or loose deck railing.
2. Homeowners Insurance Agent Requests a Visit
Every property requires insurance so that damages are covered in the event of an emergency. When obtaining homeowners insurance, the agent may request to visit the home and confirm what they’re insuring before issuing a policy.
3. Renovations Will be Ongoing
You may have big ideas for your home’s renovations. Constant improvements are something you should expect as a homeowner. Owning a home is expensive in any neighborhood, especially just after the purchase.
New flooring alone might cost thousands of dollars and you’ll need time to budget for that expense. Consider the changes that you want to make and their possible return if you sell the home in the future.
4. The Bank Sells the Mortgage
You spent a lot of time looking for the perfect lender. The loan went through, and you’re all moved into the new property. Don’t panic if you see a mailed notice about the mortgage being sold. This practice is common.
Banks sell off loans so that they can do more business with new borrowers. It has nothing to do with your creditworthiness. The only difference may be the company name and address that you send your payments to each month. The terms of your mortgage agreement won’t change.
5. An HOA Might be Involved
HOAs, or homeowners associations, may exist for separate single-family properties or within a condominium complex. These associations are designed to keep the community consistent with documented policies, including any renovations.
If you want to change anything about your home on the exterior, dealing with an HOA is something you should expect as a new homeowner. In a community with an HOA, they must first approve your changes. It may be an extra step to take during your project, but it’s usually beneficial for the entire community to have an HOA involved.
6. Expect Higher Property Taxes As a New Homeowner
You bought your home as an investment, so you hope that it will appreciate in value. When the home’s value increases, this means that the property taxes will increase on it as well. Be ready for these changes by saving a little more each year for the next property-tax payment. While you may not want to see your property taxes go up, it means your home is now worth more.