Small or lavish, the thrill of buying your very first home is matchless. Being a homeowner paves the way for umpteen responsibilities. From fixing the wall colors to deciding which appliances to toss out and systems to keep. You truly have the reigns to yourself. Dealing with the ins and outs of home improvement is not a piece of pie.
Moving into a new home is a pleasurable experience. Unfortunately, it is not a one-and-done affair. There’s much to contemplate, particularly when investing your money in matters of home improvement and refurbishing. Did you plan on getting a home warranty plan for your humble abode? Have you thought of switching up the old mechanical systems? Is redoing the floors absolutely necessary? The list of Q’s is endless. Only well-thought decisions count. New home buyers are easily swayed with the excitement of acquiring a house and striking off a major life goal. Inexperience can shove you down a slippery slope. You can strain your finances in a blink of an eye.
Did you realize that a home warranty is a pressing need for homeowners? And no, home insurance isn’t enough to cut it and cover appliance breakdowns and system malfunctions. Failing to care about investing in a home service plan protection is not the single-most mistake. Homeowners make big blunders that burn a dent in their savings. Aren’t you curious to learn about the mistakes and stay clear from committing errors?
9 Common mistakes that put all homeowners in a bad spot
An investment is reckoned as a lucrative one only when much thought has been put into it and all factors are thoroughly looked into. Have you been crushing over a chic and modern house? Think a zillion times before you say yes to the house and clinch the deal. There are a few critical factors to consider. For instance:
• Do you have the means to support your purchase?
• How far could your stretch your finances to buy the house?
• Will the swanky new investment be a big blow to your existing lifestyle?
In a nutshell, considering your budget is pivotal when plowing your savings into a new property. Think of your earnings and debts that are on a roll. Are you comfortable taking up a new big loan? If the numbers puzzle you, consult with a professional financial advisor and get a clear picture of your current standing.
1. Not paying heed to the programs, exclusively designed for new homeowners
Were you familiar with programs that promise a cut-back in your down payments? Surprised to hear of it? Stepping into the role of a homeowner is brimming with responsibilities and diligence. Being aware of programs that you could qualify for and win benefits is much needed. Local governments of counties and states introduce an array of programs that reward homeowners with striking new incentives. A discounted down-payment for instance. If researching the deets seems like a hassle, feel free to discuss with a lender or a mortgage provider.
2. Shelling out of one’s savings until its nil
Putting out a sizeable down payment certainly scales down a homeowner’s debt. However, is it worth burning out your savings in a go? With little or no savings to bank upon, coping with emergencies is no walk in the park.
Have you purchased a home that needs tonnes of refurbishing? Putting the right foot forward is what counts. Depleting your saved money to pay for the new furnishings and appliances is not an option. You could run out of money and still have innumerable appliances to set up. The downs of not investing in a home warranty are pretty similar. How sure are you of the appliances functioning in a full blow? What if the home systems fizzle out? Paying out of your savings could dwindle your funds in a bat’s eye. A home warranty instead, does a good job in securing your money.
3. Wrapping up major alterations too soon
The excitement of stepping into a new home is hard to be contained. Of course, there are a zillion plans popping in your brains regarding ways to upgrade and refurbish the home space. Little do you care to think that executing major changes in a new home calls for rich investments. Wasn’t buying the property a major investment too? Take baby steps and settle for minor up-gradation and changes, to begin with. If not and if you are doing too much with very little resources, your finances will certainly hit the rock bottom.
Even the best of contractors in business advises homeowners to at least spend a good one-year hanging hats in the crash pad. Undertaking major changes and sprucing up the house can be done post the one-year gap. Do you know the perk of settling and living in a house as it is for some time? You are thoroughly acquainted with the quirks and faults of in-home components. Proceeding with modifications is easier when you are familiar with home systems, appliances and structures that need renovation.
4. Not listing the everyday household expense
The expenses of shifting into a new abode are way more than writing fat cheques to pay off the mortgage. There are a bunch of other costs that must be factored in. Paying for home insurance, utility bills, property taxes, and home service plan protection for example.
Could you sustain in a crash pad that’s barren and has no appliances at all? No! Purchasing new appliances and keeping a check that all home systems are running in full swing is critical. Don’t you need tools to do necessary landscaping? Could you deal with a cracked roof? Squaring off the monthly mortgage repayments is a hefty expense. But the costs of home improvement and bills to foot cannot be ignored either. Planning a budget and knowing how much funds to allocate and where plays a big role. Do not skip considering mandatory expenses like such before you take the leap and purchase a swanky home.
5. Spending big fat dollars on new furnishings
A brand-new home calls for shiny new furnishings, right? But it isn’t wise to go all out and shell out riches in purchasing fancy furnishings for your house. Here’s why:
Buying a property puts homeowners in a spot with most of their money tied up. Paying a great deal of money for new furnishings chokes your budget further. Is it worth the risk?
Living in a space for some time before cramming the house with new fixtures and furniture is a smart thing to do. It gives you a crystal-clear idea of what’s needed.
Making richly purchases to spruce up and redesign a space could throw you in a pickle. Your excitement to get hands on everything new could cloud your brain and push you to make unnecessary impulsive purchases. What if you are bored of your plans of refurbishing a year down the line?
The trick is to simmer down and soak the pleasure of achieving and living in a house you’ve managed to win.
6. Neglecting the cry for necessary home improvements
Homeowners are often swayed by the ideas of decking up a new home that small issues are unnoticed. For instance, do you have a bugging issue with the plumbing? Is the roof not in top shape? Paying heed to home improvements like such can save you from encountering bigger problems and major damages.
Upkeep of the house is a must-do in the list of chores for a homeowner. What good is refurbishing if there are leaky faucets or rusty pipes? Turning a blind eye to plumbing issues or any major matters of home improvement is a big no. Damages like flooding or wrecked drywalls could cost a fortune. A good way to lessen the blow is to maintain the property. Paying riches for a new piece of furniture could take a backseat if settling a home system is a priority. Signing up for a home warranty in advance could save you the money spent in upkeeping the house.
7. Go for broke buying impulsive landscaping stuff
The desire to deck up a house with fancy plants and exquisite shrubs is hard to lay off. But it is essential to put a pedal to the metal. Landscaping is only when you’ve spent time creating a design and making informed picks. A rare exclusive shrub might win you a few appreciations but without the right care, it will wilt off sooner than you think.
If going hard and spending money is all that matters, fix the gutters and the exteriors of the house.
8. Not buying a home warranty
Purchasing an upscale home puts homeowners on a slippery slope in terms of money. Not making the right investments could toughen your resources in challenging circumstances. Is it easy to pay for a refrigerator when the older one blows up and your money is tight? What if the electricals are a big mess? Works of restoration are costly. Only a home service plan protection could free you from saving riches.
Buying a home warranty speaks volumes about a homeowner. A responsible buyer will never forgo the importance of putting money into a home warranty.