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How Your Finances Change After Buying a House in Seguin

Krista Moreno Realtor Seguin Real Estate Seguin TX Homes and Land Guadalupe County TX Homes New Braunfels TX Home Bloom Realty Seguin and Guadalupe County

Buying a house in Seguin is super exciting and a huge accomplishment (hi neighbor!), so congratulations on making this decision! But there are some effects to your finances after you buy a house. Be prepared for the hit your finances will take after you buy a house. 

Finances Change Your Credit Score

During the homebuying process, you’ve probably kept an eye on your credit score to help you secure a good interest rate on your mortgage. Don’t get too attached to that number because it will drop once you get a mortgage. According to a study from LendingTree, it can fall anywhere from 11 to 40 points. 

Your credit score drops (temporarily) because you just added on a lot of debt. From the same survey, LendingTree found it will take about nine months of paying your mortgage on time for your score to go back up. 

You’ll Have More Expenses

You only pay for rent and utilities when you rent, maybe an HOA depending on where you live. As a homeowner, you spend a lot more now that you’re the owner. A mortgage and homeowners insurance policy will be a large chunk of the costs. But there are additional, not so apparent costs, like maintenance and repairs, regular pest control, lawn services, property taxes, etc. If your property is bigger than your last place, expect higher electric, water, and gas bills too. 

Your Savings Is Your Lifeboat

Even if you put down the bare minimum on a down payment, that’s still a hefty chunk of cash. This is why a healthy savings account will be your life raft afterward. Homeownership requires more recurring costs than renting, and you need to prepare for unexpected expenses like sudden repairs or breakdowns. A healthy savings account is crucial. One expert estimated that a homeowner spends about $2,000 a year on home maintenance and repairs. To get ahead before, save up to three to six months worth of expenses to cover the mortgage, utilities, and other essential bills. 

Late Payment Aren’t an Option

Late payments might have been an option when you were renting, but if you want to keep your roof over your head, they’re not an option as a homeowner. Most lenders have a grace period of around two weeks to get your payment in, but it doesn’t mean it won’t have consequences. One missed payment can have severe consequences like late fees, a drop in your credit score, and foreclosure if it’s repeated. A monthly budget and auto payments or monthly reminders will help keep you on schedule to avoid late payments. If there is a mistake, contact your lender immediately and ask for a goodwill gesture of removing the late payment from your credit report.

Finances Change Your Tax Benefits

It’s not all bad! As a homeowner in Seguin, you get new tax benefits you didn’t have while renting. Now that you’re a homeowner, your real estate taxes and mortgage interest can yield tax savings depending on your situation. And as a first-time homeowner, it would be wise to hire a financial professional, so you can maximize your homeowner deductions to get a higher refund and more cash. 
Now you know how a home will affect your finances, and now you can prepare! Buying a home is a significant financial investment, so make sure you do it right the first time. If you need help moving to Seguin, contact me! Even if you’re not prepared, reach out, and I can help. Email me at krista@bloomrealtytx.com or call me at (830) 305-5248!

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