by Laurel Michaels

Created on: June 06, 2009   Last Updated: June 18, 2009

Homeownership is a rewarding experience. You will gain financially as your monthly housing expense is put towards owning property and not just renting it. You will also find personal satisfaction from the pride of ownership. You begin to put a little of yourself into your home and soon it becomes a reflection of you and your family. It is one of the most important purchases you will make in your life. It is vital, therefore, that you avoid some common pitfalls as a homeowner.

1. Don't buy more house then you can afford. Your lender may tell you a monthly payment that you qualify for and you may be surprised to find that it is much more then you are paying in rent. But remember that they are using your before tax income to qualify you and they are only taking into account debts like credit care payments and installment loans. You must factor in childcare expenses, utilities, automobile maintenance and other costs that you incur each month. You will have additional monthly expenses owning a home that you did not have renting, such as a sewer or trash bill, or property taxes. Remember that only one person knows what you can truly afford each month and that is you. Your monthly house payment should allow you to have enough money left over to decorate and improve your home so that you and your family will be happy there.

2. Don't rule out a home because of cosmetic defects. A little TLC can go a long way towards turning a run down house into a charming home. Don't be afraid of paint, initial yardwork, and minor repairs. If the home's layout, neighborhood, location, and price are appealing, then calculate the cost of the improvements and you may find that it could be your dream home at a dream price. On the other hand, know your limits and don't buy something that needs major kitchen remodeling for instance, when you don't have the money or know-how (or friend's know-how) to do it.

3. Get a home inspection. There are companies that will inspect the electrical, plumbing, central air and heat, and other systems of the home. They can tell you if repairs are needed, if the systems have been maintained adequately, and other information you need to know before you make a decision to purchase it.

4. Drive through the neighborhood of your potential home at different times. This will give you a feel for the neighborhood. Are there lots of kids? This could be good or bad depending on your preference. Late on a Saturday night is it noisy? Is there alot of traffic on the street? If a neighbor is out doing yardwork, maybe they will chat with you about their experience living there. You may find out some informative tidbits just by being friendly and asking.

5. Make sure you have adequate insurance coverage on your home. There are many variables to a homeowners policy, including how much your deductible is, whether valuables inside the home are covered, and if flood or earthquake damage is included. Know what your policy covers so you are not surprised if the unexpected happens.

6. Don't neglect your home once you move in. Remember that as a homeowner, the appearance and maintenance of your home reflects on the rest of the neighborhood. Part of being a responsible homeowner is making sure your yard is free of weeds and debris, your grass is watered and your porch is tidy. Repair broken screens or other eyesores. Your neighbors will be happy and you will feel better when you come home to a well-kept yard.

Make your homeownership experience as rewarding as it should be by avoiding these pitfalls. Settle into your home, give it your attention and individuality and it will give back a sense of accomplishment and belonging.

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