During the sub-prime mortgage crisis, many families ended up in substantial amounts of debts when the price of their home plummeted below its purchase value. Fortunately, there are a number of steps that homeowners can take to reduce these types of risks and others. The following guide provides simple tips and tricks for keeping your home’s finances above water.
Get a Home Inspection
Before purchasing a home, it’s essential to get a home inspection. A home inspection can help reveal potential problems that may not be visible to a regular individual when touring a home.
For example, many older homes may have asbestos, mold, or even lead paint on the exterior. This can make any renovations or repairs expensive. In addition, it can pose a significant health risk to a home’s occupants.
A home inspection can also reveal any problems with the foundation of a home. As homes grow older, the foundation underneath a home can sometimes shift.
This can make it very difficult to resell a home in the future or keep it habitable on a budget. By getting an inspection now, you can avoid months of headaches later on and putting money into a property that requires a lot of work.
Avoid Variable Rate Interest Loans
If you’re getting a mortgage for a new home, it’s important to avoid variable interest rate loans. A variable interest rate loan is different than a fixed interest rate loan. With a fixed interest rate loan, a homeowner’s interest rate doesn’t change over time.
With a variable interest rate, the rate can go up or down based on a variety of factors. If a homeowner misses a payment on a variable rate loan, they may discover that the interest rate for their mortgage has suddenly gone up a lot, making the cost of the home even greater.
Get Full Home Insurance
Your home is your most valuable asset. In the event of a fire or environmental disaster, everything you own could be lost. Without home insurance, homeowners can experience financial devastation in the event of a disaster.
other valuable tips:
Insurance doesn’t just cover a home itself. In most cases, it also covers all of a family’s belongings inside a home. In the event of a robbery or the loss of items inside a home, insurance will often provide a payout to cover these costs. Be sure to budget ahead of time for homeowner’s insurance.
By following the simple tips and tricks in this guide, you’ll be able to save money and provide financial security for your family for years to come. Be sure to let your real estate agent know about your home budgeting requirements when consulting with them about your dream home.
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