Just Bought a House? Here’s What to Do Next

Congratulations on achieving homeownership. This guide offers practical advice for new homeowners, covering immediate steps after closing, from securing your property to managing finances and maintaining your investment.

Settling Into Your New Home

Upon taking possession of your new home, prioritize immediate security measures. Change or rekey all exterior locks to ensure only you and trusted individuals have access. Professional rekeying services typically cost between $40 to $100 per lock.

Next, transfer or establish essential utility services. Contact local providers for electricity, gas, water, and internet to set up accounts in your name, often requiring your new address and the closing date. Initiate this process promptly to prevent service interruptions, as it typically takes a few business days to a week.

Update your mailing address with various entities to prevent important documents from going astray. The U.S. Postal Service (USPS) offers an online change of address service that redirects mail to your new residence for a period. Beyond the USPS, update your address with financial institutions, employers, subscription services, and government agencies like the Department of Motor Vehicles.

Finally, organize and securely store documents received during the closing process. This includes the deed, title insurance policy, and all mortgage-related documents. Keep these papers in a safe, accessible location, such as a fireproof safe or a secure digital backup, for future reference.

Navigating Your Home Finances

Understand your mortgage; your first mortgage statement provides a detailed breakdown of your financial obligations. This statement outlines the principal balance, interest, and amounts allocated to your escrow account for property taxes and homeowner’s insurance. It also states your payment due date and accepted payment methods.

Property taxes are assessed annually by local jurisdictions based on your property’s value. These taxes are collected through your mortgage escrow account, where a portion of your monthly payment covers the anticipated tax bill. Anticipate potential property tax reassessments, which can occur periodically, especially after a sale or significant improvements, leading to adjustments in your monthly escrow payment. Many jurisdictions offer a homestead exemption, which can reduce the taxable value of your primary residence.

Review your homeowner’s insurance policy to ensure adequate protection. Verify that coverage limits align with your home’s replacement cost and your chosen deductible is manageable. Consider additional coverages, such as flood or earthquake insurance, if your property is in an area prone to such natural disasters, as standard policies typically exclude these perils.

Establish a comprehensive budget that accounts for all homeownership costs. Beyond your mortgage payment, factor in recurring expenses like utilities, property taxes, and insurance premiums. Allocate a dedicated fund for home maintenance and unexpected repairs, setting aside 1% to 3% of your home’s purchase price annually. Maintaining an emergency fund for home-related issues can provide a financial cushion for unforeseen repairs.

Maintaining Your Property

Upon moving in, conduct an initial home assessment to identify immediate maintenance needs. Walk through each room and exterior area to create a prioritized checklist for repairs or updates. This helps address small issues before they escalate.

Establish a routine maintenance schedule for preserving your home’s condition. This includes seasonal tasks such as changing HVAC filters, cleaning gutters, and testing smoke and carbon monoxide detectors. Performing these tasks ensures the efficiency and longevity of your home’s components.

Create a home inventory for insurance purposes, documenting possessions through photographs, videos, or written lists. Include descriptions, serial numbers, and estimated values. Store this inventory in a secure, off-site location, such as a cloud service or a safe deposit box, ensuring accessibility even if your home is damaged.

Familiarize yourself with your home’s essential systems. Locate the main water shut-off valve, typically found in a basement, crawl space, or near the water meter, to stop water flow in case of a burst pipe. Understand the layout of your electrical panel and the function of individual circuit breakers for addressing minor electrical issues.

Finally, explore your new neighborhood and identify local resources for home management. Learn about local trash collection schedules, recycling programs, and community guidelines for waste disposal. Research local contractors, such as plumbers, electricians, or landscapers, and obtain recommendations for future home service needs.