The road to homeownership can be bumpy, but the ride is well worth it.
As a new homeowner, you’re on cloud nine with your major life achievement and attainment of financial security.
Yet, the road as a homeowner can also be filled with speed bumps and other pitfalls. But we’re here to steer you in the right direction. Read on to learn how to avoid some common mistakes that can hold you back during the first year of homeownership.
Assume new debt
During the process of buying a home, you were advised to avoid opening new lines of credit or making major purchases. This strategy is vital as you get through the lending application process.
The same financial caution should also be exercised during the first year of homeownership.
The danger is that you can become overwhelmed by the sudden change to your budget, which includes the mortgage payment, utilities and other associated costs. In this predicament, it can be tempting to pile on additional debt.
Instead, focus on getting used to your new financial pace before taking on new financial responsibilities.
Not preparing for surprises
No matter how much research you’ve done, it’s always wise to expect the unexpected.
For example, the home inspection and report gave you peace of mind that the home is in good condition and requires very little work.
Yet, an extreme weather event can cause some unforeseen damage, or a major appliance can suddenly stop working within months of moving in.
The blow from these nightmare scenarios can be lessened with a comprehensive home warranty or insurance, which can help protect your most valuable investment.
Rush through renovation
Creating a home and space in your image is important, but there’s no need to rush renovations or other major home improvement projects.
While a home improvement project is exciting, it can also be financially draining during a sensitive time.
Take some time to recenter your financial health and get a real-life feel of your new budget before taking on a major expense.
Also, take this time to settle in and learn what it is like to live in your current space. As you get comfortable and sit on your ideas, you’ll be better able to carry out your vision when the time comes.
Take on new major life change
Buying a home is a huge deal. Stacking another huge lifestyle change on the fly can send shockwaves through your first year of homeownership.
There’s plenty to deal with in this critical first year. A new variable in the equation will create uncertainty and slow down the pace at which you can get acclimated to your new surroundings and budget.
New homeowners should give themselves some time to let the dust settle and to enjoy all the benefits and joys of owning a home minus any added financial stress.
