Buying your first house is an exciting moment — and you’re probably as eager as anyone to get settled and start making it yours.
But just because you’ve signed all the papers and closed on your new home doesn’t mean you can let your guard down on your money. After all, a mortgage payment only accounts for some of the cost of homeownership. There’s still work to be done to help ensure your finances remain in good health and your home investment grows with you.
To help you save money, here are 5 money smart tips to consider as you leap into owning your own home.
#1: Create a homeowner budget
Going through the homebuying process can feel a little like running a marathon, but there’s still a little more distance to cover once the keys to your house are in your hand. Take a moment to examine your new home purchase and work out a complete and comprehensive budget. Not only will this give you a better idea of what your monthly expenses may look like, but you will also be better able to plan for everything related to home ownership.
Your budget should completely cover all the costs and expenses associated with your home. These costs include:
- Your mortgage payment
- Property taxes
- Insurance
- Utilities
- HOA fees (if applicable)
- Home warranty or service contracts
- Security system
It’s also important to set aside money for any incidental maintenance or repairs that may crop up — something that is often overlooked when transitioning from having a landlord to becoming a homeowner. After all, you don’t want the cost of fixing a dripping sink or servicing the HVAC system to catch you completely off guard.
#2: Reserve funds for necessities
Chances are your new home might need furniture, appliances, or even certain odds and ends to make it livable and maintainable — like rugs, curtain fixtures, a lawn mower and tools. Depending on your circumstances, you might choose to shop for these items before or after closing on your new home. Either way, having the money budgeted and available will save you stress in trying to figure out how to afford the items you need when you do need them.
#3: Don’t overspend trying to personalize
Everyone wants to make their house their home. For some this might mean upgrading from old apartment furniture to something nicer. For others, it might entail completely remodeling entire rooms. In either case, it’s just as important to manage your home expenses — and that might mean pumping the brakes on a spending spree once you move in.
Rather than rush to make all the changes at once, give yourself time to adjust to your new budget and new home first. Personalization will come piece by piece when you’re ready and can comfortably afford it.
#4: Plan for home improvements
It’s no shock that home renovations and improvements can be expensive — but planning for them may pay off in more ways than one. If your short- or long-term plans include making some upgrades to your new home, it might be wise to start budgeting (and saving) now.
For example, a good starting point for a kitchen remodel is a budget of 10 to 15% of your home’s value. It may also be helpful to have a general idea of average cost ranges for various home remodel projects — and the return on investment — before you get too far along.
#5: Cut costs where possible
The expense of getting into a new home may seem a bit imposing, but it doesn’t have to be impossible. If you feel your new home budget might be running a little tight, there are plenty of ideas you might try to loosen things up and give you a little more wiggle room.
One idea worth occasionally reviewing is to cancel any unnecessary streaming services or subscriptions you no longer need or use. You might also try buying more generic products at the store. These small changes might seem fairly insignificant but making them could save you some money in the short term, as well as help improve your financial outlook in the long term.
We’re here for you every step of the way
There’s a lot of added comfort that comes from having a lender and financial institution you can confidently rely on during the homebuying process — and long afterwards. At Zions Bank, our mortgage professionals are there for you with the service and support you need. To learn more about mortgages and loans visit Zions Bank online or stop by a local branch and speak with a Zions Bank mortgage loan officer today.
