Buyers Ed Test tips

You should know and understand the following points covered within the Being A Successful Homeowner section:

Maintaining your home

Maintaining your home and homeownership may include additional costs for purchasing power tools and electric appliances; doing necessary repairs; and lawn care and/or snow removal.

Prioritizing

It's important to prioritize the spending on your home. For example, replacing an old, inefficient gas furnace would take priority over replacing stained, worn-out carpeting; replacing a roof that’s only five years old; or purchasing a new dishwasher.
As a new homeowner, with respect to controlling spending on your house, it’s advisable to continue to fill out the Monthly Spending Planner, budget money for new expenses, such as water or trash collection services; and obtain price quotes for home repairs/improvements from more than one contractor. It is not advisable to attempt major home renovation without sufficient knowledge and experience.

Do it yourself or call in a professional?

Some of important maintenance checks you should perform in your home periodically include cleaning gutters; checking exposed wiring for wear or damage; changing furnace filters; closing windows when it rains; checking caulking for decay; and check foundation for cracks or crumbling.

Insuring your home

While normal wear and tear is not usually covered by homeowner’s insurance policies, fire damage, theft and vandalism are.
Lenders insist that borrowers have homeowner’s insurance primarily to protect the value of your home in case it is damaged or destroyed.
Replacement coverage on your homeowner’s insurance policy refers to covering the cost of replacing an item instead of its fair market value.
Liability insurance on your homeowner’s insurance policy refers to covering potential medical and related expenses in the case that someone is injured on your property.

Establishing a reserve

To ensure you are still able to make payments in the unfortunate event of a layoff, illness, etc., experts recommend building a reserve fund of three to six months' living expenses.

Getting help

In the event of unexpected financial difficulty, the best thing you can do is to contact the lender.