When you start thinking about buying a Daytona Beach home, there are all kinds of financial tips about what to do and when. Things like where to buy, how to get the best mortgage rate, how to save on this and that. Heck, there’s even a ton of information advising you why it’s best not to even think about buying a Daytona Beach home.
There’s no arguing the fact that buying a Daytona Beach home is the biggest purchase you’ll probably ever make, which is why it’s especially important to take a number of post-sale steps to make sure you protect your largest financial investment ever.
Steps to Take AFTER Buying a Daytona Beach Home
The first thing you should do after buying a Daytona Beach home is re-key or change all the locks on the doors and windows of your new home. You may also want to consider installing deadbolts where there are none. This may not seem like a financial issue, it will quickly become one if you have to replace a whole house worth of stolen or damaged items resulting from a burglary because someone still had a key to your new home.
Next, you should review your insurance coverage to make sure it stays up to date with your needs.
Whether you are first-time home buyer, or moving up and buying a Daytona Beach home that is bigger than your previous home, it’s important to adjust your life insurance coverage to cover any new mortgage debt. As a general rule of thumb, life insurance should cover 10 years of income plus any large debts or upcoming expenses. In the case of buying a Daytona Beach home, that would include the mortgage, but also could include residual debts or a child’s college costs.
If you put less than 20 percent down when buying your new home, you’re likely having to pay private mortgage insurance. PMI rates are usually 1 percent of your loan balance, which can translate into thousands of dollars a year, depending on the size of your mortgage. This is money you never recoup, and even worse, represents real risk if the value of your home decreases.
You might want to think about pausing any 401(k) or retirement contributions and defer them towards paying down your loan. The faster you can get below that 20 percent loan-to-value ratio, the sooner you can drop the PMI.
After buying a Daytona Beach home and taking possession, you also take the financial responsibility for anything that goes wrong. Home inspection or not, things do break down, and there will be general maintenance to keep your home’s value from going down. Sure up your emergency savings to cover these repairs and maintenance so you don’t have to use credit cards when something breaks down.
Buying a Daytona Beach home is a time of excitement and hope for the future, but there are some issues you need to consider, like, what happens if you were to unexpectedly pass away? Now is a good time to review your will or trust to make sure your new home is a part of those documents and that your beneficiaries are updated and complete.
A good habit to get into after buying a home is doing a yearly review on the fiscal impact your house is having on your life and take any measures needed to make sure it’s as positive and cost effective as possible.
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