Your First Home Together

You’ve waited for this day since you were a kid. How many times did your
parents tell you that once you get a home of your own that you could do anything you wanted, but as long as you lived under their roof…
Now it’s happened. You’re married and the two of you have worked hard and
bought your first house together, or are looking. Here is a checklist to go over so that you can be realistic and not get caught up in how pretty the wallpaper in the master bedroom is:
The cost of mortgage, taxes, and insurance: don’t fall for buying more house than you can afford because of a 30 year mortgage. The good news is that the IRS allows tax deductions for each year and they are included with your yearly mortgage statement from your lender. Ask when applying for your loan what the bank has to offer in the way of tax breaks for homeowners.
Understand how real estate taxes are figured (assessed) and take a class on new home owners and how to buy your first house. All credit unions provide free seminars on this subject, and your bank may as well.
Homeowners insurance is not only mandated in some areas, it’s just a good idea. You never know what will happen, and your home is probably your biggest financial asset. The trick is to find honest insurance which will cover the basics and unprecedented happenings at a fair and reasonable price. Do not automatically go with the agent that the seller recommends, or your lenders unless you can not get the loan otherwise-then really question it.
Make sure that the contract allows for you to make larger principal payments when you can afford it. Locking you into one amount each month with no fluctuation means you are bound to pay the high interest rate forever. You never know what can happen. If you should win the lottery, you’ll want to make a much larger payment, and pay down that interest which will continue to accrue.
Really take a look at those home improvement projects and decide if they are realistic. If you’re not the handy type, learning how to be on your new home isn’t necessarily smart. If you’ll need to hire a contractor to fix something major, discuss this with the realtors as you negotiate offers. Have an independent surveyor assess the homes worth and condition (especially the foundation and roof); do not rely on the seller or the bank to make these decisions for you.
With a little forethought and a few seminars, you should be well on your way to moving into your first home with a minimal amount of concern as to whether or not you got ripped off, and there are many who will take advantage of a newlywed, starry eyed couple, in fact more so than not. Take the time to become educated about home owning, buying, resale value, and contracts.