Critical Tips for New Homeowners
Survival Tips For First Time Home Buyers
Buying a home is a monumental achievement. It’s exciting, life-changing, and yes, a bit overwhelming. If you've just taken the leap into homeownership, congratulations! But as thrilling as it is, there are a few essentials you need to know to set yourself up for success. These straightforward, no-nonsense tips will help you avoid common pitfalls and enjoy your new home without unnecessary stress.
Update Your Address
This may sound basic, but it’s one of the most overlooked tasks for new homeowners. Changing your address promptly can save you a lot of headaches later.
Here’s why:
- Bills and Payments: You don’t want mail piling up at your old address. Missed communications from utility companies or other creditors can lead to late fees—or worse, account collections. It’s especially problematic if you’re planning to refinance later and your credit report shows delinquencies.
- Identity Theft Protection: If your mailbox isn’t secure, reconsider your setup. Buy a locked mailbox or consider a PO Box for added safety. Identity theft from stolen mail is more common than you might think.
- Notify Everyone: Update your address with banks, employers (so your W2s are sent correctly), creditors, and subscription services.
- Set Up Mail Forwarding: Even after you’ve notified everyone, mistakes can happen. The USPS mail forwarding service is an excellent backup for catching anything that slips through.
A small error here can snowball into big problems later. Don’t skip this step.
Change the Locks
No matter how trustworthy the previous homeowner seems, you don’t know who has copies of your house keys. Real estate agents, contractors, or even friends of the old owner might have had access.
Changing the locks isn’t just a smart idea—it’s essential. And don’t just stop with the front door; replace the locks on every exterior door. It’s a relatively inexpensive task that buys you priceless peace of mind.
Avoid Credit Card Debt for Home Improvements
Moving into a new home can spark the urge to make everything perfect immediately. You might want new furniture, fresh paint, landscaping, or even a kitchen remodel. That’s normal! However, rushing these changes—and worse, putting them on a credit card—can wreak havoc on your finances.
Here’s the risk: piling up credit card debt can skyrocket your debt-to-income ratio. If you want to refinance later or need another loan, this can hurt your chances of approval. Plus, credit card interest rates are astronomically high compared to other types of financing.
Here’s a better approach:
- Live in the House First: Spend some time in your home before diving into major changes. The light and feel of a room can influence your decisions. For example, a color that seemed perfect at first might not work once you're living there.
- Create a List and Budget: Write down everything you want to update, prioritize based on need, and shop smart. Wait for sales, compare prices, and only tackle projects you can afford without going into debt.
Taking your time lets you make better decisions and keeps your finances healthy.
Stay Vigilant About Junk Mail
Once you buy a home, your mailbox will start filling up with spam. Some of it will look very convincing, urging you to buy unnecessary services or send payments to shady companies.
- “Special Title Insurance” or Warranties: You likely don’t need to purchase extra coverage if you already have title insurance. If you’re unsure, ask your lender before making any purchases.
- Payment Scams: You might receive fake notices claiming your loan servicer has changed, instructing you to send payments to a new address. Always confirm this type of information directly with your lender, either by phone or email. Don’t rely on random letters in the mail.
When in doubt, reach out to your loan officer or lender. A quick text or email can help you verify whether something is legitimate or a scam. Better safe than sorry.
The Bottom Line
Becoming a homeowner is an enormous accomplishment, and you should feel proud of this milestone. But it also comes with new responsibilities. By staying organized, securing your home, and avoiding financial pitfalls, you’ll set yourself up for long-term success.
Take the time to follow these tips, and you’ll avoid the most common mistakes new homeowners make. Welcome to your new home - and to the next exciting chapter in your life!
Jennifer Beeston
SVP Mortgage Lending @ Guaranteed Rate
Phone: 786-933-2077
Apply For Mortgage: www.zerostressmortgage.com
Resources To Learn More:
Youtube Thousands of Mortgage and Real Estate videos: www.youtube.com/jenniferbeeston
Free VA Loan Course: www.nostressva.com
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