Saturday, March 8, 2014

FINANCIAL RESPONSIBILITIES OF HOME OWNERSHIP


Yay!  You’ve bought your first home. Exciting and overwhelming at the same time. A bitter sweet feeling.  You have that feeling of relief now that you have finally purchased your new home but be aware that financial responsibilities of home ownership is just the start.

Pay your mortgage on time
Whether monthly, biweekly or weekly, be sure that you always make your mortgage payments on time. Making late payments (delinquency) may result in late charges and negatively affect your credit rating. Failing to make payments can even lead to more serious consequences like foreclosure. A good way to prevent late payments is to have the amount automatically deducted from your account every month and to put at least three months’ worth of mortgage payments in savings for emergency situations. If you are having trouble making payments, discuss the situation with your lender.

Saving For Emergencies
Even if you are a contractor, repairs come at a cost. Every building has a life cycle, which means that all parts of a building age and require major repairs or replacement at some point. For example, you might know that your roof will have to be replaced in a few years simply because of its age. Repairs like these are expected and can be planned for. However, many repairs are unexpected and can sometimes be costly. Set aside an emergency fund to deal with unexpected problems ranging from major repairs to illness and job loss. A healthy guideline is saving 5% of your take-home pay and putting it in a special account.

Living Within Your Budget
Prepare a monthly budget for your home and stick to it. You should monitor your bills every month and evaluate your progress in meeting your financial needs. If you continue to spend more than you are bringing in, you must find ways to cut back. If you are having trouble sticking to your budget, don’t hesitate to ask a financial advisor for assistance.

For all your real estate needs I am more than happy to help you and the people you refer to me. Call 647-308-5148 and if no answer, send a text and I’ll be sure to reply!

Makini Smith
Sales Representative
RE/MAX First Realty Ltd., Brokerage
www.makinismith.com

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