It’s up to you to protect your investment in your home. Your coaches explain how.
Once you’re a homeowner, you need to protect your investment by managing your finances effectively, maintaining your home in good condition, and being prepared to handle unexpected expenses. In this lesson we’ll explain how.
Change is the one constant in life, so we’ll tell you more about what do to if your finances change and how to work with your lender if that happens.
Pay your mortgage!
Starting with your very first mortgage payment, be sure to make your payments on time. If you don’t make your payments, you could damage your credit rating or lose your home.
Some lenders offer automatic mortgage payment programs that will ensure that your mortgage is paid on time. Some plans allow you to pay off your loan more quickly so that you pay less interest and possibly accumulate equity faster. Ask your lender about the payment options they offer.
Manage your money
Establish a monthly schedule for paying your bills; consider using an automatic bill pay service. Stick to your spending plan so you don’t overspend. Keep careful financial records to stay aware of where you stand.
Postpone new debt
As a new homeowner, avoid opening new credit accounts. Before you make any other major purchases and take on additional debt, be sure you handle your new monthly housing expenses, including your new mortgage, utilities and other home-related expenses.
Keep on saving
Now that you’re a homeowner, it’s more important than ever to set aside money for planned and unexpected expenses. Try to have enough savings available for six months of mortgage payments should you need it.
Maintain your property
Maintain your home inside and out. Regular maintenance may help you to avoid more expensive repairs later on. It may also reduce energy costs and keeps up the value of your most important investment, your home.
Have adequate insurance
The value of insurance is to protect you from unexpected expenses. Make sure you have adequate coverage in all areas, including homeowners’ insurance.
Use home equity carefully
Take advantage of borrowing against your home equity if you need to, but manage it carefully. Always pay on time. Read more about borrowing on your home equity.
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