These tried and true tips help you make sure you know all about your property and are prepared for emergencies. Don’t let your dream home become a nightmare.
Buying a home is one of the biggest investments you’ll ever make, so taking the right steps before and after closing can save you from costly surprises later. Here are four key things every homeowner should do to protect their property, finances, and peace of mind.
1. Get a Home Inspection
Before signing the dotted line, schedule a professional home inspection. This step uncovers hidden issues like foundation cracks, roof damage, or electrical problems that could become expensive down the road. An inspection gives you leverage to negotiate repairs or adjust the purchase price before closing.
While the number of days buyers have for home inspections isn’t set in stone, most contracts in Virginia and Tennessee allow buyers roughly 7–14 days after the contract is signed to complete the inspection and request repairs. However, timelines can vary, so buyers should always check with their trusted REALTOR® to confirm the exact deadline outlined in their purchase agreement.
The National Association of REALTORS® (NAR) emphasizes the importance of this step, stating:
“A home inspection is a visual assessment of a home’s condition … Inspectors look for thousands of potential problems in areas of the home.” – National Association of REALTORS®
NAR also notes that failing to obtain an inspection “could potentially cost you a great deal of money and hassles in the long run.” This supports the idea that inspections help uncover hidden issues such as foundation, roof, or electrical problems before they become major expenses.
2. Review HOA & Zoning Restrictions
If your new home is in a neighborhood with a Homeowners Association (HOA), review the rules carefully. These can include everything from paint colors to parking limits. Also, check local zoning laws to understand what’s allowed on your property, especially if you plan to add a shed, fence, or rental unit. Knowing the restrictions upfront avoids conflicts and costly changes later.
According to the National Association of REALTORS® (NAR), HOAs enforce a wide range of rules designed to maintain property values and neighborhood standards. In their article “Navigating HOA Rules: Considerations for Real-Estate Agents, Buyers and Sellers,” NAR explains that HOAs oversee “architectural standards, parking restrictions, and exterior modifications,” and they stress that “reviewing HOA governing documents is important for homeowners and prospective buyers.” This step helps ensure that buyers understand all community expectations before moving in or making property changes.
The U.S. Environmental Protection Agency (EPA) also highlights the importance of zoning laws in their report “Codes That Support Smart Growth Development.” The EPA explains that zoning and building codes “regulate where and what type of development can occur,” helping communities manage growth responsibly while protecting property owners from future disputes or unsafe construction.
Together, these sources make it clear that reviewing HOA rules and zoning laws early in the buying process is a key step to protecting your investment and avoiding costly surprises later.
3. Know What Your Mortgage Payment Covers
Your monthly mortgage payment usually includes four main components: principal, interest, property taxes, and homeowners insurance, commonly referred to as PITI. However, not every loan includes all of these items. Some exclude taxes or insurance, meaning you’ll need to pay those separately. Always confirm what’s included so you can plan your budget accurately.
According to Wells Fargo, in their article “The Components of a Mortgage Payment,”
“Your monthly mortgage payment has many parts: the loan principal, loan interest, taxes, homeowners insurance, and potentially mortgage insurance.”
They also explain that when an escrow account isn’t used, homeowners may be responsible for paying property taxes and homeowners insurance separately, which can affect your monthly budgeting.
The Consumer Financial Protection Bureau (CFPB) echoes this in their article “What is PITI?” stating that,
“Principal, Interest, Taxes, and Insurance, known as PITI, are the four basic elements of a monthly mortgage payment.”
The CFPB further clarifies,
“Amounts that cover property taxes and homeowner’s insurance may go into an escrow account … If you don’t have an escrow account, you may be responsible for paying those directly.”
Both sources emphasize the importance of understanding what’s included in your mortgage payment. While most loans combine your principal and interest with taxes and insurance through an escrow account, some do not. Always verify these details with your lender or REALTOR® to ensure your budget accurately reflects your total homeownership costs.
4. Budget for Emergencies & Maintenance
Even after closing, homeownership requires ongoing investment. A good rule of thumb is to set aside 1–2% of your home’s value each year for maintenance and unexpected repairs. From leaky faucets to HVAC breakdowns, being financially prepared ensures small issues don’t turn into big financial burdens.
According to the Fannie Mae:
“The rule of thumb is to budget 1% to 4% of your home’s value per year for maintenance costs, including repairs and replacements.” Fannie Mae
They note that newer homes may need closer to 1%, while older homes may require up to 4%.
As reported by NerdWallet:
“One commonly cited rule of thumb to save 1% to 4% of your home’s value each year for maintenance and repairs can give homeowners sticker shock as real estate prices soar.” Boston.com
This source emphasizes that actual needs vary based on home age, condition, and location.
Bottom line: Start with saving at least 1% of your home’s value annually for maintenance and emergencies, and adjust upward if your home is older or in a more demanding climate to avoid being caught off guard.
Final Thoughts
Buying a home is more than just a dream it’s a long term responsibility and a lifestyle choice. From getting a thorough home inspection and reviewing HOA or zoning rules, to understanding your mortgage payment details and budgeting for ongoing maintenance, each step helps protect your investment. When you take the time to prepare, plan, and stay informed, you can enjoy your home with confidence, comfort, and peace of mind for years to come.
Sources:
- National Association of REALTORS®. Home Inspections. NAR, https://www.nar.realtor/home-inspections.
- National Association of REALTORS®. Navigating HOA Rules: Considerations for Real-Estate Agents, Buyers and Sellers. https://www.nar.realtor/magazine/real-estate-news/navigating-hoa-rules-considerations-for-real-estate-agents-buyers-and-sellers.
- U.S. Environmental Protection Agency. Codes That Support Smart Growth Development.https://www.epa.gov/smartgrowth/codes-support-smart-growth-development
- Wells Fargo. The Components of a Mortgage Payment. https://www.wellsfargo.com/mortgage/learn/components-of-a-mortgage-payment/
- Consumer Financial Protection Bureau. What is PITI? https://www.consumerfinance.gov/ask-cfpb/what-is-piti-en-152/
- Fannie Mae. How to Build Your Maintenance and Repair Budget. https://yourhome.fanniemae.com/own/how-build-your-maintenance-and-repair-budget
- NerdWallet. How to Budget Realistically for Home Repairs. https://www.nerdwallet.com/article/finance/how-to-budget-realistically-for-home-repairs
Keith Davis, REALTOR®, affiliated with Red Door Agency, licensed in Virginia & Tennessee.
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