For homeowners, especially first time homebuyers, managing the mortgage can, at times, be a struggle. But failing to properly manage the mortgage can have big consequences, such as a decreasing credit score or even foreclosure. To help avoid problems, the Real Estate experts at Potomac Valley Management have compiled the following Tips for Managing your Mortgage.
1. Budget: Every household has a different set of expenses. The trick is to familiarize yourself with these expenses and budget accordingly. You will have to manage not only your mortgages, but also the electricity bill, water bill, trash service, cable and Internet fees, and more. Make sure that your budget can safely cover these expenses.
2. Build a Reserve Fund: Unfortunately, surprises happen, from burst pipes and broken water heaters to roof leaks and more. So in order to deal with these unexpected expenditures, we recommend building a reserve fund. This safety net will ensure that you never miss a mortgage payment. We recommend saving 3-6 months of living expenses in a separate account.
3. Avoid Big Purchases: Do not going on a crazy shopping spree in an attempt to furnish your new home. Take things one step at a time. Spend slowly and schedule your big purchases.
4. Pay the Mortgage on Time: Lenders can start foreclosure proceedings after you fall just 60 days behind in your mortgage payments.
Hopefully you have found these Financial Management Tips useful. If you have any questions, please contact Potomac Valley Management by calling 1.877.390.4090 or visit PVMGT.com today!
Potomac Valley Management, LLC has been providing quality property management services to the DC Metropolitan area since 2004. We specialize in multi-family property management for apartments, cooperatives and homeowner’s associations.
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Sources: New Homeowners: 4 Tips for Managing Your Mortgage