5 Common Financial Mistakes to Avoid After Buying a House

June 14, 2022
 By Erin H.

Buying a house is a big financial investment, so its one that you need to ensure is made in the best way possible. Have a look below to see five of the most common financial mistakes you could make after you buy a house.

1. Not Preparing or Not Updating Your Will

As many people know at this point, an estate plan is an important part of life for a good future. Despite this being common knowledge, 60% of Americans currently don’t have a will. Purchasing a home is one of the biggest life expenses that you will come across in your life, so it’s crucial to prepare an estate plan or upgrade it to include this major investment. When you do this, you will have secured your investment and helped safeguard the future for your beneficiaries if anything were to happen to you.

2. Failing to Keep Up With Repayments

While getting a home is a great thing to do for your peace of mind as far as your family’s security goes, it’s not the end of the road as far as budgeting goes. In fact, this is only the beginning. From this point onwards, you will need to pay your mortgage on time and avoid making disruptive changes such as opening new lines of credit, running up your existing ones, and closing others without a solid plan in place. This can serve a major blow to your credit and make it hard for you to do other things and make other purchases in the future.

3. Not Anticipating Homeownership Costs

As mentioned, buying a home does not mean that the importance of budgeting has come to an end. There might be other expenses associated with homeownership besides servicing your mortgage. These include fees and charges if your new home is part of a Homeowner’s Association that charges a certain amount for maintenance. You may also need to do upgrades and renovations every now and then to keep your home in good shape. In 2018, for example, American gardeners spent 47.8 billion on their lawns and gardens. This is just one instance of the expenses you might face as a homeowner and that you should anticipate in order to safeguard your future.

4. Failing to Do a Thorough Home Inspection

Even if you had a home inspection done before you bought your home, there might be a chance that it wasn’t thorough enough. To dispel any lingering doubts and be more confident in your home’s state for a long time to come, it’s a good idea to have a thorough and more extensive inspection done. This will help you know the changes and upgrades you have to make before settling down if any.

5. Not Replacing Broken Things Early Enough

Finally, if you do have an inspection done but don’t work on replacing broken and missing things, the inspection won’t have served its purpose. Set aside the money you need to make changes and repairs so that the process can be easy and conclusive. Work with an expert whenever necessary and you may save money by not having to redo anything as it will be done right the first time. The best thing about working alongside a professional is that they can help you learn more things than you knew. For example, they could let you know that stone-coated steel roofing is fully recyclable, has Class 4 hail impact resistance, Class A fire rating, and is very lightweight at a mere 1.5 lbs per sq ft.

Avoid making these five financial mistakes when you buy a house and it will be an enjoyable purchase for you, serving you and your family.

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