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December 21, 2022

4 Budgeting Tips For New Homeowners

Account for new expenses and understand the costs of owning a home.

Becoming a new homeowner is an exciting new chapter. Receiving your keys after closing on your home is just the beginning; owning a home comes with many new responsibilities and decisions to be made. Check out the tips below to prepare for your future expenses.

Prioritize high-interest debt

A mortgage is often one of the most common (and largest) forms of debt that people encounter in their lifetimes. However, it’s still important to prioritize paying off high-interest debt with high-interest rates (such as credit card bills) and maintain other debt by making minimum payments. If you’re having trouble managing your debt, consider working a side hustle or freelancing your skills to help keep up with payments. For additional resources and recommendations, visit Citizens First Bank’s Online Mortgage Center today. 

Revisit your insurance

As a first-time homeowner, updating your insurance should be a top priority. Not only should you look into homeowner’s insurance, but there are other types of insurance to think about as well. Any time you have a major life event, you should take time to look at finances to ensure your budget is staying balanced. You may need to reconsider and reconfigure other insurance such as life, health, and auto to account for the new expenses as a homeowner.

Update your budget

A new house means a whole new budget. Now is the time to really map out where your money can benefit you the most. Your updated budget should include your mortgage payment along with other expenses such as utility costs, homeowner association fees, insurance, and maintenance or repairs. Try to cut costs where you can by eliminating any extra or unneeded expenses like monthly subscriptions or eating out. If you’re creating a budget for the first time, consider making an appointment with one of our mortgage specialists. 

Account for extra expenses

Oftentimes, when people purchase a new home they forget about all of the “extra” items that go along with it. When updating your home budget, be sure to set a portion of it aside in order to save for necessary items like furniture, remodeling, unexpected maintenance costs, and other household items. These expenses are easy to forget and are sometimes unpredictable, so they add up quickly!

Contact a Citizens First Bank near you to learn additional information related to mortgage, loans, and budgeting resources. Feel free to stop in, give us a call or visit our website today to learn more.