Top Things New Homeowners Should Know

Buying a home is a major accomplishment. It also comes with responsibilities that might be new to you, especially if you’ve been renting or living with family. This rundown of things new homeowners should know can help you keep your home and your budget in tip-top shape.

You may also be new to homeowners insurance. Your home is a big investment, and you want to make sure it’s protected. Talk to Farm Bureau to make sure you have the coverage you need and that you understand your policy.

Make a Maintenance Checklist

When you stay on top of what your home needs, you can catch small problems before they turn into major, expensive issues. 

Many routine home maintenance tasks are things you can do yourself:

• Replace the filters in your furnace
• Test smoke alarms, carbon monoxide detectors and fire extinguishers
• Look over your siding for damage or loose shingles
• Check your foundation for cracks
• Bring in hoses and protect outside faucets from freezing before winter weather sets in
• Clean gutters and downspouts
• Clean your dryer exhaust vent
• Check walls and ceilings for staining or peeling paint, which could be a sign of a leak
• Clean your refrigerator coils

For others, you may want to call in professionals who can:

• Inspect for termites
• Clean and inspect your heating and cooling systems
• Inspect your roof
• Flush your water heater
• Check your attic insulation

Your home may need other maintenance, too. If you had a home inspection before you bought your home, that report can be a good starting place for your to-do list.

Build a Budget for Your Home

As a homeowner, you need to be able to afford to take care of your home. The amount you need depends on the age and condition of your home, its size and how well it’s been maintained. 

A rule of thumb is to budget 1-4% of your home’s value for annual maintenance. So, for a home that’s worth $500,000, you should plan to spend $5,000 to $20,000 a year. With a newer, well-maintained home, the lower end of that range might be sufficient. An older home that needs extensive work will cost more.

Another home budget consideration is private mortgage insurance (PMI). If your down payment was less than 20% of your home’s price, your lender probably required PMI. This insurance generally costs $30 to $50 for every $100,000 you borrow. So, with our $500,000 example home, PMI might cost $150 to $250 per month. 

When the equity in your home reaches 20%, you should no longer need to pay PMI. So, if property values are rising in your area or you’ve been paying on your mortgage for a while, you may reach that threshold. Your lender will probably require an appraisal before they remove PMI. 

Preparing to be a Homeowner

You’ll build a lot of knowledge and expertise as a homeowner, but at first, there may be a lot you don’t know. Reach out to Farm Bureau. When it comes to what to know before buying your first home, we can review your expectations and insurance needs and help you get a strong start.