Barbara's Blog - Three Important Responsibilities Home Owners Have

Ah! Home ownership, the American dream. At least for those who want it. There is definitely a level of freedom when you own your own home, but there are still some very real responsibilities to making home ownership work. Three are:

Financial responsibilities

First and foremost, you need to make timely payments to your lender. This helps you build great credit, credit you can use to help with projects around the house – like remodelling – or buying furniture or other large items at lower interest rates.

Try not to get overextended; your total debt really shouldn’t be more than 40 percent of your income.  Any more than that can lead to problems meeting your monthly payments.  If you can, pay off balances when you can. Limit any new credit you are thinking about getting like new credit cards.

It is also important to try and save money as well.  It may seem hard but there are several ways you can do this.  You can put more money into your 401K, buy bonds or invest in the stock market. You can even start a savings account and put money away each pay period. Assess what you can afford to save each period.

Most financial advisers suggest building a reserve equal to six months of mortgage payments. You need savings for emergencies or large expenses or in the event you lose your job or cannot work.

Neighborhood responsibilities

Like it or not, when you purchase a home, you become part of that neighborhood.  How you take care of your home and yard will play a part in whether your neighborhood prospers or declines. You can add to the value to the homes and neighborhood by maintaining or manicuring (if you will) your lawn and the repairs and upkeep of the home’s exterior. You may even influence your neighbors into maintaining their lawns.

Look at it as protecting your investment. The better the value of the homes around yours increases the value of your home.

Household responsibilities

Bottom line, you should enjoy life in your new home. It’s a great way to step up your lifestyle. You can take this opportunity to create an environment you control. How you want to decorate it, entertain in it and how much you want to get involved in your new community.

As you’ve heard before, choose a home that meets your needs – number of bedrooms, bathrooms and the location. Choose a location that is close to your likes, work or activities you like. Think about traffic, distance to work and family and friends.

Make choices that make sense for all involved in purchasing a home as well as to all those who will live in that home. But make sure you make these decisions while staying within your financial means.