1. Request Both Paper and Electronic Copies of Your Closing Documents

When you’re at the closing table, the title company will ask if you want a paper or electronic copy of your closing documents. It’s best to request both. Store the paper copy in a secure place, like a fireproof safe, to ensure you have easy access when needed. These documents, including your survey and closing statement, may be essential come tax time or when you decide to make future changes to your property.

2. Set Up Autopay for Your Mortgage Payments

One of the simplest ways to avoid the risk of late payments is to set up autopay for your mortgage. Missing a mortgage payment can have serious consequences on your credit score and could lead to late fees. By automating your payments, you ensure peace of mind and stay on top of your financial obligations without the hassle of remembering due dates.

3. Create a Home Maintenance Schedule

Regular home maintenance is key to preserving the value and condition of your property. Create a schedule for tasks like flushing your water heater, changing air filters, and arranging regular pest control services. These small, routine tasks can prevent larger, more costly issues from arising in the future, saving you time and money.

4. Annually Review Your Homeowner’s Insurance

Your homeowner’s insurance should evolve with the value of your home and inflation rates. Annually reviewing your policy ensures that your coverage remains adequate in the event of a catastrophe. If your home has increased in value, make sure your insurance reflects that change to avoid any unpleasant surprises during a claim.

5. Build an Emergency Fund for Home Repairs

Unexpected home repairs can be financially draining. Start building an emergency fund specifically for home repairs. Aim to set aside several thousand dollars for potential issues like a broken air conditioner or a malfunctioning dishwasher. Having this cushion will help you handle emergencies without the stress of scrambling for funds.

6. Review Your HOA Documents

Before making any changes to your home or yard, thoroughly review your Homeowners Association (HOA) documents. These documents outline the rules and regulations regarding pets, landscaping, and other property modifications. For instance, there might be restrictions on the number and type of pets you can have, or specific guidelines on the types of plants you can add to your yard. Understanding these rules upfront will prevent any potential conflicts with your HOA.

By following these six tips, you can protect your investment and enjoy a worry-free homeownership experience. 

The post 6 Tips For After You Close On Your New Home appeared first on Liberty Star Mortgage.

HOA Payments and Escrow: What’s the Truth?

Unlike property taxes and insurance, HOA payments are not included in your escrow account. Your escrow account is designed to collect and manage funds for annual expenses like property taxes and homeowners insurance. The lender then pays these on your behalf when they come due.

HOA dues, however, are handled differently. Typically, you’ll receive an invoice from your HOA in December that covers the entire following year. This invoice is due by January 31st, and you’ll need to pay it in full to avoid any penalties.

 Budgeting for Your HOA Payments

Because HOA fees aren’t included in your escrow account, it’s essential to budget for these payments separately. This can come as a surprise for first-time homeowners who are accustomed to their escrow covering all their major annual expenses.

To ensure you’re financially prepared, it’s wise to set aside funds each month for your upcoming HOA payment. This way, when that invoice arrives in December, you’ll have the necessary amount ready to pay.

Why Is This Important?

Failing to budget for your HOA payment can lead to financial stress when the invoice arrives. Missing the payment deadline can also result in late fees or penalties imposed by your HOA, adding unnecessary costs to your budget.

Have Questions About Escrow and Budgeting?

Understanding how escrow works and what’s included can be confusing. If you have questions about your escrow account, HOA dues, or how to effectively budget for your home expenses, contact Collette Horton at Liberty Star Mortgage.

The post Is Your HOA Payment Included in Escrow? appeared first on Liberty Star Mortgage.