It’s important to do your research and be prepared before taking the leap into homeownership. Here are seven general tips for getting started on your plan. Don’t worry. At Honest Abe we are experienced in guiding new homeowners though this process along with planning the design, manufacture, delivery and construction of your home.
- Start by getting your finances in order. This means getting pre-approved for a mortgage, setting a budget and saving for a down payment.
- Research neighborhoods and consider factors like proximity to work, schools and amenities, especially if you plan to raise a family in the home and perhaps grow old there.
- Look at a variety of properties to find the one that best meets your needs and budget and will accommodate your log or timber frame home beginning with materials delivery though aging in place.
- Hire a reputable real estate agent to help you find the right property on which to build and negotiate the best price.
- Consider the long-term costs of homeownership, such as property taxes, insurance and maintenance expenses when planning for your custom home. There’s more to home ownership than just the design and build!
- Make a plan for emergency repairs and set aside money for unexpected expenses.
- Plan for properly insuring your investment. Review the checklist of possible insurance needs below.
What insurances do first time homeowners need?
As a first-time homeowner, it’s important to have the right insurance coverage to protect your home and your financial interests. You will most likely have bought builder’s risk insurance while the home is under construction, but there will be permanent insurance needs once the home is completed. Although all those listed on the checklist below may not be applicable to your home, some types of insurance that you may want to consider include:
- Homeowners insurance: This covers damages to your home and personal property caused by certain events, such as fires, storms, and burglaries. It may also provide liability coverage if someone is injured on your property.
- Flood insurance: If you live in an area prone to flooding, you may need to purchase flood insurance to protect your home and personal property from water damage.
- Earthquake insurance: If you live in an area prone to earthquakes, you may want to consider purchasing earthquake insurance to protect your home and personal property from damage caused by earthquakes.
- Personal liability insurance: This covers you if you are sued for injuries or damages that you or your family members cause to others.
- Umbrella insurance: This provides additional liability coverage above and beyond the limits of your other insurance policies.
It’s a good idea to review your insurance needs with a licensed insurance agent or broker who can help you determine the right coverage for your specific situation.
Here’s an informative article with details about becoming a homeowner.