Homeowner Basics

Utilities
Most often people think of utilities as heat and electricity though there could be additional utilities such as town sewer and water and even cable and internet.

Homeowners or Condo Association Fees
Depending on the location of the home you purchase, you may find your new residence located inside a Homeowners or Condo Association. A Homeowners or Condo Association is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and residents. Those who purchase property within an HOA's jurisdiction automatically become members and are required to pay dues, known as HOA Fees. Some associations can be very restrictive about what members can do with their properties while others may give residents more freedom.

Homeowners Insurance
Homeowners Insurance is a form of property insurance that covers losses and damages to an individual's home and assets and is a required coverage when there is a lien or mortgage on the home. Typically, the insured dwelling coverage amount must be at minimum value to cover the full loan value. The annual premium for homeowners insurance can be escrowed (included with your principal and interest mortgage payment) and the cost of the insurance can also change annually.

Town Property Taxes
Property taxes are assessed on real estate by a local government, the town in this case, and paid by the property owner. The annual property taxes can change yearly and the cost of them can be escrowed (included with your principal and interest mortgage payment).

Did You Know? If you are a permanent resident of the state of Maine who has owned a homestead (primary residence) in Maine for the last 12 months, you could qualify for a homestead exemption property tax deduction! Contact your local town office for more information or to take advantage of the savings!

Down Payment
A down payment is a percentage of your home's purchase price that you pay up front when you close on your home loan. Lenders often look at the down payment amount as your investment in the home. Depending on the mortgage loan program you are applying for, a down payment may or may not be required. The down payment amount will affect the loan to value ratio of the mortgage which will influence the mortgage payment amount.

Private Mortgage Insurance (PMI)
Private Mortgage Insurance is a type of insurance policy that protects the lender if a borrower were to stop paying on their home loan. It is typically required for conventional mortgage loan borrowers, though it can also be required with various other mortgage loan programs. The mortgage loan program and the loan to value ratio will specify for how long PMI is required to be held on a mortgage loan. PMI is always escrowed (included with your principal and interest mortgage payment).

Mortgage Closing Costs
Closing costs are fees and charges in excess of the purchase price of the property and are due at closing. Closing costs are often assessed on the value of the loan, not on the value of the home being purchased. They may include fees related to the origination, underwriting, and processing of the mortgage loan. They can also include things like real estate commissions, tax prorations, homeowners insurance premiums, as well as title costs and recording or filing fees.

- Rake the Lawn
- Re-seed and Mow Lawn
- Check for Wear: Driveway, foundation, chimney, etc.
- Clean the Gutters
- Clean off and Re-stain Deck
- Check Smoke Alarm Batteries and Test
- Check Sump Pump
- Clean Baseboards and Window Sills
- Clean Your Garage
- Sell or Donate Unwanted Items

- Insulate Pipes
- Weatherproof Doors and Windows
- Protect Your Plants
- Store Outdoor Equipment
- Check Heating
- Winterize Air Conditioner
- Stock Up on Emergency Supplies

HVAC
If your home has central heat and air, reach out to a local HVAC technician to have your checkup and servicing. They will check for any damages and make sure everything is clean.

Plumbing
Make sure that your plumbing isn't showing any signs of leaks or cracks. Also make sure to check your house for any potential water damage as that could indicate that there is a pipe leaking somewhere.

Roof Repairs
Make sure you check your roof to make sure that there is no damage to it. A damaged roof can not only cause water damage, but it can also let in drafts and raise your heating costs. It's important to make sure any roof damage is fixed.

Lawn Upkeep
Outside of winter months it is important to make sure you keep up with lawn maintenance including reseeding and mowing.

Mold and Mildew
Check your home frequently for any signs of mold and mildew. These grow under damp conditions, so it could be a sign that you have a water leak or poor ventilation. Even if it is just caused by something simple like condensation build-up, mold and mildew can be damaging to your health, so make sure you get it taken care of immediately.

Paint
Look for any peeling or chipping paint both inside and outside your home. Paint helps provide protection from the elements, and any cracks or peels can lead to things like water damage and rot.

Chimney
A chimney can get damaged throughout the year and will also need to be cleaned, regardless of how often you use it. It is important to make sure that you have your chimney checked.