You Own a Home -- Now What? Five Things You Absolutely Must Do as a Homeowner

You've closed on a piece of real estate. If you're like most people, you're probably half ecstatic and half scared out of your mind by the weighty responsibility you've taken on. Now that you're a home owner, there are some things you must do quickly, to protect the property you've just purchased and preserve your real estate for your loved ones in case something happens to you.

#1. Get Mortgage Life Insurance
Mortgage life insurance will pay the balance due on your home if you die before the mortgage is paid off. This means your family will own the home free and clear. Getting mortgage life insurance is especially important if you have a spouse and/or minor children.

#2. Review Your Hazard Insurance Regularly
You probably already have a comprehensive homeowner's insurance plan, but you may need hazard insurance as well. Hazard insurance protects against specific natural disasters such as earthquakes, fires, and water damage due to floods. It's important to make sure your insurance is sufficient to cover the amount of the mortgage, should your home be totally destroyed.

#3. Update Your Will (or Get One if You Don't Already Have One)
If you die without a will, your property, including your real estate, will go through probate court and will eventually be awarded to your closest living relative. If you do not have any living relatives as stipulated by law, your property goes to the state. A will is especially important if you and your partner are not married in the eyes of the law, if your property is worth a lot of money and you want to plan for inheritance tax, or if there are certain relatives you don't want receiving your money.

#4. Set Aside an "Emergency Budget" for Unforeseen Problems That Come Up
Being a homeowner means that you can't simply pick up the phone and call a landlord to fix things that go "bump" or "splash" in the middle of the night. Suddenly you're the one responsible for finding a carpenter or plumber and spending big bucks to fix problems. It's a good idea to set money aside in a savings account so that you're ready when the worst happens. As the old saying goes, it's far better to have it and not need it than need it and not have it.

#5. Plan on Spending 0.5% to 1% of Your Home's Value Per Year in Maintenance and Improvements
To keep your home's value strong, you need to maintain and, preferably, improve upon it. Standard maintenance and improvements include activities like updating your electric wiring and plumbing, adding extra cable hook-ups, painting every few years, putting in new carpet, keeping the roof in good repair, and installing central heat and air conditioning. Whatever you do, take an active role in your home's appearance and functioning. Nothing is harder to sell than a house that looks and feels decades out of date.

So there you have it, the five most important things you can do as a homeowner. Before the thrill of your real estate purchase wears off, get on the phone and start taking care of business.

This article was provided by  Automated Homefinder, Colorado's Boulder real estate experts.