Bought Your First Home? Steps You Need to Take After Closing

Written by  //  July 28, 2014  //  Home Insurance  //  Comments Off on Bought Your First Home? Steps You Need to Take After Closing

If you’ve recently closed on your new home, you are probably celebrating after making it through the grueling buying process. However, becoming a new homeowner is also a time to prepare for the numerous responsibilities that accompany home ownership. New homeowners should take certain steps to protect their recently acquired investment. The following suggestions will keep your home buying success from running afoul.

Seek Professional Tax Assistance

Buying a home will drastically change the way you file your tax returns in subsequent years. First time home buyers need to be especially careful with their first filing following the purchase. It is wise to get filing help from a tax professional who can walk you through the process to get you the refund you deserve. Some tax issues a professional can assist with include deductions for private mortgage insurance (PMI), points paid to the lender, property tax, and mortgage tax income.

Be Smart About Improvements

Many new homeowners decide to put their own mark on their new home by making improvements. Although improvements can help beautify the home, they should be kept to a minimum. Focus on completing any necessary repairs to the to prevent small problems from escalating in the future. When doing repairs, or even improvements, it is important to use a professional contractor to ensure the job is done right. Don’t let botched work hurt the value of your newly purchased home.

Keep Track of Expenses

It is best to retain all receipts generated from repairs or improvements. Documenting improvements is especially important because they can have future tax benefits. If the home sells in the future, improvements made to the home may lower your tax liability.

Get Appropriate Insurance Coverage

Insurance is not only a suggested expense, it is a necessity for most lenders. Underwriters Insurance Brokers (BC) Ltd, a company which provides insurance in Kamloops, suggests looking at the bigger picture when shopping for appropriate coverage. Lenders will require a policy that fully covers the total loss value of the property. However, you should also supplement coverage with policies for umbrella coverage, car insurance, life insurance, and disability insurance to help you stay current on mortgage payments when unexpected problems arise.

Make Copies Of Closing Documents

Being a first time home buyer you may not realize your closing documents are the most expensive pieces of paper you will ever receive. Right after you are done closing and have the paper work make one copy of everything at least. You will most likely have copies filed with your county’s recorded of deeds but it doesn’t take much for an error to happen. Having copies helps keep you covered if something like that does happen. Keep them in a safe place and always know where to find them. It’s also nice to put them in a binder to keep them all in order and to make sure you don’t lose a page.

Successful home ownership is a marathon, not a race. Protecting your investment requires continuously making smart decisions after the closing. Following the above steps will help you stay on the right track.

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