Owning a home offers you the freedom to paint your walls any color of the rainbow, get a pet or renovate your kitchen. It also comes with many new responsibilities and financial commitments that require your attention.
As a homeowner, you'll be responsible for:
Your mortgage payment. The Promissory Note you signed at closing is a legal agreement between you and the lender in which you commit to making your mortgage payments in full and on time each month.
Home repairs and maintenance costs. You'll need to protect your asset by building a savings plan for home repairs and life's unexpected emergencies.
Other housing-related costs. You’ll need to budget for additional items such as Homeowner Association dues, PMI, property taxes and homeowners insurance, as applicable.
Why it's important to pay your mortgage on time:
You made a legal and financial commitment to your lender at closing.
Your mortgage is a loan and being late on your payment, or missing your payment, can have a significant negative impact on your credit score.
If your payment is late, you may be charged a late fee, which can be costly.
Missing three monthly payments can prompt a foreclosure procedure.
Homeownership can be very rewarding, as well as a good financial investment, but responsibilities are part of the package — requiring both financial and time commitments.