For many people, a home will be on their most important investments they will make during their lifetime. Their home is on of their biggest investments and an important financial asset. Once you’ve passed the test of home ownership, there are several things you can do to help safeguard your home.
The first thing to do, whether it’s your first home, or you’re a seasoned home-buying veteran, is to make sure your credit is on par. You can visit Free Annual Credit Report for a free copy of your credit score. Make sure all the information is accurate. Depending on the lender, you’re likely to qualify for the best interest rates if your score is somewhere between 700 and 770. A score of 800 or above places you in an entirely different category.
If your credit score is less than desired, take steps to fix your credit. Your credit score can help you realistically evaluate how much you can spend on your new home. The next step will be to find a mortgage lender that you feel comfortable working with. Friends, associates and co-workers can be a good source of information. Your new home and its location can affect your quality of life for years to come.
Develop an Ongoing Savings Plan
Put an ongoing savings plan in place. The fact that you’re now a homeowner is proof that you’ve learned to manage your money and finances fairly well. Make sure you have enough money budgeted each month for your house payment, emergency repairs, taxes and insurance. Some home buyers may have homeowner association fees to consider as well. An effective savings plan is not something that just happens. A savings plan can help you prioritize and save for the things you want in life without having to take on unnecessary debt.
A great money management tip is to Identify your savings goals. It’s not necessary to have a large income to get the things you want in life. Define the most important things and set aside a little money at a time. In time, you’ll reach your goal. Save for vacations, new vehicles, entertainment and your children’s college fund.
Purchase Home Owners Insurance
It may sound startling, but it’s estimated that 60 percent of American homes lack inadequate insurance. A homeowner’s insurance plan can help protect against liability, structural damage and theft of personal belongings. You can never tell when disaster will strike, such as fire, flooding, earthquakes or wind damage. You have the choice of deciding which policy will work best for you. Policies may include standard or more comprehensive policies that will cover 80 to 100 percent of your home’s value and its belongings.
Protect Your Health
Protecting your health and your home go hand-in-hand. Times are challenging and it’s becoming more difficult for individuals to balance the demands of their job and their home life. Job cutbacks, layoff, and rumors of outsourcing have people scrambling to find a more-balanced lifestyle. A sudden illness due to a stroke or heart attack is not the best plan for securing a home and your family’s well-being.
