What to Expect (That You Aren’t Expecting) as a New Homeowner
The first years in your new home are often the most memorable, and for good reason. Buying a house is a big deal! It can take a lot of planning and be one of the biggest accomplishments we have in our life.
There are all the firsts: The first Christmas, first snow, and the first birthdays and family get togethers in your new nest.
Just getting pictures up on the walls and adding personal touches takes many people the first year or longer. Making your new house a home is definitely a process.
Along with all the fun adjustments, there can be some unexpected changes in the first couple years of homeownership.
When you’re closing on your new home, you’ll be feeling like you’ve finally made it to the finish line. You’ve crossed all the T’s and dotted all the I’s, and everything should be locked in for good, right?
Well, kind of.
Your interest rate will be locked in, but there are certain aspects of your paperwork that can change, and these changes are nearly always unexpected.
3 unexpected changes to keep an eye out for as a new homeowner:
- Your loan will often be sold.
- Your property taxes may go up.
- Your property management company can change.
1. Your loan will often be sold.
Don’t be surprised to get a letter in the mail shortly after buying your home, stating that the lender will no longer be servicing your loan, as of the following month.
This is VERY common. It’s more uncommon for your financing to stay with the same company for the length of the loan.
Be prepared for this, and make sure to open all the boring mail that you might typically let pile up.
2. Your property taxes may go up.
This little surprise is by far the least pleasant.
We all know that taxes tend to go up, not down, so it’s safe to assume that property taxes on our new home will increase at some point. But just because this makes sense doesn’t mean we are expecting it.
In new construction neighborhoods in particular, property taxes can start quite a bit lower than they will end up being when all the homes are finished being built.
This is because the estimate of taxes is being made before the homes are completed, so a new assessment is done later on to make the numbers more accurate.
The takeaway here?
When making an offer on a home, pay attention to the current property taxes, which will make up a portion of your mortgage payment. Be aware that you may need some wiggle room in your budget for increases down the road.
3. Your property management company can change.
Along with the other fun bills you don’t enjoy getting in the mail, letters from your property management company are important to take a peek at.
The property management company is elected by your HOA (homeowners association) to carry out the maintenance that your dues are going towards. Why does this affect you? Because your dues need to be going to the right place.
Typically, when the property management company changes, you’ll receive about a month’s notice in the mail. Then you’ll need to get your automatic payments re-routed to the new requested location.
Not super complicated, but another unexpected change to keep an eye out for as a new homeowner.
