When it comes to owning a home, first-time homeowners might find themselves with a lot of questions. Examples of questions range from, figuring out mortgage payments and a homeowner’s insurance policy to smaller questions such as setting up utilities and garbage pick-up. Owning a home means a lot more than just living in it, there are specific tasks that must be completed first. So, for all the first time homeowners out there, or for the ones thinking about buying a home, do not fret. Our goal is to help all homeowners settle in, and build their future. The aim of this post will be giving first-time homeowners some basic information to get themselves comfortable.
The Mortgage Calculator
Remember in grammar school when teachers would say you need basic math skills because “you won’t have a calculator everywhere”. They were not entirely correct. Yes, we should all know basic math skills, but when it comes to calculating payments, a calculator makes things easier. Thankfully, plenty of companies and groups have nifty mortgage calculators that help homeowners understand what they will pay. The calculator adjusts for down-payment size and assists homebuyers with their questions and concerns.
Property Tax Calculator
One of the trickiest things about buying a new home is figuring out the property tax you will pay. There are public websites that allow people to view the tax bill for certain private property. However, what one person paid for a home in property taxes does not accurately reflect how much a new owner will pay.
The previous owner may have one or several tax deductions, such as the homeowner’s deduction or a senior citizen deduction. To better understand this, and to learn how to calculate your potential property tax watch the video linked here.
Homeowner’s Insurance Policy
Unlike car insurance, a homeowner’s policy and renters insurance for that matter are not required by law. In other words, a person can own a home legally without having an insurance policy. However, if the home is financed by an institution, then that institution is likely to request that the owner take out a policy. Do not fear though, plenty of affordable policies exist.
Setting Up Utilities
Once you find the right policy, homeowners should shift their focus to utilities. After all, a Home is not much of a home without power, water, heat, or other utilities. In order for your water and sewage to be set up, contact your local government. Your city/village/township government takes care of those utilities, so you should let them know in advance. For power, Comed is the place to call for most people. However, your local government can point you in the right direction. For heating, it’s entirely dependent on what the home uses since a home can be heated by natural gas, electricity, or other forms. Finally, setting up garbage pick-up is a must, so contact your local government to make sure garbage does not pile up.
Ending Old Utilities
Another major necessity for new homeowners is ending all previous utilities and services at their old address. Since this post is for first-time homeowners, you might not need to cancel service but rather notify the property owner. However, cable subscriptions, internet bills, and similar services will need to be ended by you since these are not essentials. Before moving out, make a checklist of services and utilities you are paying for so you don’t forget one.
Take-Home Message (Pun Intended)
Before moving into a home, first-time homeowners should know some basic information first. Calculating your mortgage and property tax bill helps determine what you’ll owe. Once you’ve calculated those amounts, finding an affordable homeowner’s policy should not be difficult. After taking care of the money side of things, you’ll need to set up essential utilities such as water, gas, and electricity. Remember to end all previous utilities and services at your previous address as well.