Introduction

Congratulations! It’s exciting to enter the world of homeownership for the first time. And with that excitement comes possibilities, like buying new curtains, throwing a housewarming party, remodeling the kitchen—the list only seems to grow.

Whether you’re about to move in or have already spent some months getting settled, sit down for a minute and realize one thing: You can’t do everything at once. And if you don’t do some of the boring, sensible stuff now, it may never get done, which could cost you money later. So let this chapter help you cover some basic tasks, like:

• advising people of your new address and phone number
• organizing your records and home so you’ll be able to claim insurance proceeds, tax deductions, and more, and
• making sure your home is safe and secure.

Don’t worry, we’ll take this step by step. And in later chapters, we’ll get into some of the details, like budgeting, maintaining your home, and dealing with neighbors.

Tip: Haven’t moved in yet? Think before you set the date. It’s easiest to do many fix-ups (like painting, or replacing floors) in an empty house.

Getting the Word Out: You’ve Moved!

You’ve probably told your friends and family about your new location ten times over, but those who most need to know are those easiest to forget. If you haven’t done so already, fill out a Change of Address form with the U.S. Postal Service—you can do it online at www.usps.gov or at a local post office. Your regular mail will be forwarded for 12 months, and your periodicals for 60 days. But the post office doesn’t advise senders about your new address, so whoever is living in your old place will eventually start receiving your mail. It’s best to get in touch with everyone you can think of now.

If you haven’t moved in yet, make sure local service companies know that it’s time to turn on your power and water and transfer these services to your name. (The former homeowner probably had everything turned off.) You don’t want to get stuck in the dark, or hassle over dividing a bill with the former owner.

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Here’s a handy checklist of the most important places to notify of your new contact information. Make sure you can check them all off.

• Electricity, water, and gas companies. Call your local providers and arrange for a new account. If the seller hasn’t told you who to contact, search for “utilities” in a directory like Yahoo!’s (http://dir.yahoo.com).
• Trash collectors. Find the local waste management provider through the Environmental Protection Agency (www.epa.gov/ msw/states.htm). If you’re in a condo or co-op, this may be included in your monthly fee—check with the association.
• Telephone, Internet, and TV provider (cable/satellite). It may be economical to subscribe through one provider for phone, Web, and cable TV, or now may be a good time to check out the latest satellite deals. If you’re interested in forwarding phone calls from your previous number, contact your previous provider to find out your options.
• Cell phone provider. Don’t create any delays in disputing your next exorbitant bill!
• Subscriptions. You can probably update your address at the periodical’s website. Don’t forget to contact alumni magazines or newsletters you get from nonprofits, too. And what about your favorite retail catalogues?
• Credit card companies. Make sure creditors know where you are—you’d hate to get behind on a payment now.
• Other creditors. Also contact any other creditors, like your student loan or auto lender.
• Bank or investment account managers. You really don’t want information about your accounts going to your former address.
• Department of Motor Vehicles. Go to www.dmv.org to get information on updating your car registration and driver’s license.
• Your auto insurer. If you’ve moved to a ZIP code with fewer accidents or thefts, the insurer may even lower your rates.
• Parking permit provider. If you need a residential parking permit, let the appropriate permit-issuing entity know. Try your city’s website.
• Registrar of voters. Go to www.nased.org/membership.htm for links to your state’s elections offices, which should give you a change of address form online.
• Other service providers. Call your doctor, dentist, chiropractor, and anyone else likely to call or write to you—perhaps with a discount coupon or appointment reminder.

If you have children, make sure they know how to get home. Have them memorize their new address and telephone number and your full name, and ensure that the school has the correct contact information.

At Your Fingertips: Organizing Your Records

Keeping good house-related and financial records can save you money, period, end of story. Well, not quite the end of the story. As a new homeowner, you’ve probably never had to keep track of so many documents, so it’s important to set up a good filing system at the beginning. Later when, for example, you’re wondering how much you can deduct in mortgage interest or are ready to sell and want to show potential buyers how your energy-saving improvements cut your gas bill, you’ll love being able to go right to the appropriate file. In this section, we’ll suggest categories for your files, and explain why keeping them up to date is important.

But first, a basic word on storing these documents. It’s best to buy a locking file cabinet and keep the key somewhere secure. Or if you live in a flood zone, choose airtight, waterproof plastic containers, and store them well above ground level. Create folders with relevant titles such as “Closing Documents,” “Repair and Improvement Receipts,” “Product Manuals,” “Homeowners’ Insurance,” and more, according to the topics below. If you’re not sure which file a document should go in, make copies and keep it in more than one.

Also find a location outside your house in which to keep copies of critical papers, including your house deed, loan documents, and car and homeowners’ insurance policy. If a fire or other disaster makes your house temporarily uninhabitable, easy access to these will make your life much easier. A safe deposit box is good, as is a secure place at a trusted friend’s house (for weekend access).

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Your purchase and ownership records

Below are the basics: documents that prove you own the house and contain information about its ongoing financing and insurance.

• Closing documents. These include all the paperwork that was flying around at your closing, such as your purchase agreement, deed, disclosure forms you received from the seller, title insurance commitment, and more. They prove your ownership (a top priority), and can be useful to refer back to, for example to see how your property boundaries are shown on the title report.
• Home loan documents. These include all documents associated with your mortgage—such as your promissory note, HUD-1 Settlement Statement (listing all the services and charges to you and the seller), and payment schedule.
• Inspection reports. Keep your home inspector’s written report, along with any reports you received from the seller or from city inspectors. They may be handy for answering questions like, “When did our inspector say we should replace the roof by?”
• Homeowners’ insurance policy. In an emergency, you’ll want to know how to contact your insurance company and what you’re covered for. Having the contract handy will make dealing with company representatives much easier.
• Community association records. If your condo or home is governed by a homeowners’ or community association, keep all the relevant documents, like the CC&Rs, so you can check on such things as whether you can put up a clothesline or must really pay a special assessment fee.

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Your tax records

At last, you can claim those big-ticket tax deductions that come with homeownership (which we’ll discuss more in Chapter 8), and itemize a few other deductions, to boot. But no fair guessing on the numbers—you never know when you’ll be audited. Here are some of the most important pieces of information to keep:

• Mortgage interest and points. The interest you pay on your mortgage or home equity loan is generally tax deductible, as are points you paid up front. Your lender (or lenders) should send you a post-year-end statement totaling your interest payments.
• Property tax. State property taxes are deductible from your federal taxes. Keep a copy of every tax statement you receive, with notes on how you paid the bill (for example, a personal check number). If your property tax bill is paid out of a lender’s escrow account, this will also appear on the annual statement the lender sends.
• Private mortgage insurance (PMI). If you took out your mortgage between 2007 and 2010, any PMI premiums you’re paying are tax deductible as long as you make less than $100,000 (after that, the deduction is phased out). Keep a copy of your billing statements.
• Charitable contributions. If you’ve donated to any 501(c)(3) charities, the donation is probably tax deductible. Charities must send you receipts for donations over certain amounts, but for others, you’ll need to keep your own proof (such as a cancelled check).
• Home business records. If you run a business from your home, your taxes are going to be more complicated than the average Joe’s. However, that can also translate into more deductions, for a portion of your home maintenance and utilities, office supplies, and more.

Your maintenance records

All homes require upkeep, and upkeep costs money. Keeping track of your maintenance and improvement efforts and costs will help you anticipate regular maintenance costs (such as when you might need a new water heater), as well as provide information to later potential buyers. You’ll also be able to contact the appropriate manufacturers or service providers if something goes wrong. Here are some documents to save:

• Professional service records. Careful notes on or records of who has been unclogging your plumbing, updating your electricity, landscaping your garden, and more—and how much you paid them—will help you if you decide you want to use (or avoid) them again. These records can also be turned over to prospective buyers when you sell, so they can see what’s been done and hire professionals familiar with the property.
• Manuals and warranty information. Keep all the info you’ll need to replace, return, or otherwise deal with your house’s furnace, air conditioning system, and appliances. Hopefully the seller left you relevant manuals and warranties; most warranties carry over to subsequent homeowners.
• Repair and improvement receipts. Keep records of and receipts for your repairs and improvements to the house. When you sell, you can figure out which projects qualify as improvements that lower your capital gains tax liability (discussed in Chapter 8).
• Utility bills. When and if you sell your home, buyers will most likely want to see about two years’ worth of utility bills, to estimate their average expenses. (You can shred the older bills.)
• Permits and plans. If you add a room, remodel a bathroom, or knock out a wall, and need to get plans or permits, hold on to them. Again, when you sell you can pass these on to the new buyer.

Now Where Did I Put ...? Organizing Your Worldly Goods

Moving into a new home is like being given a blank slate, a chance to set things up the way you want them—free of all that stuff you sold at your premoving garage sale. With a little initial planning, you’ll know exactly where to find what you need when you need it—the winter jacket you store during the summer, or those martini glasses for your first cocktail party. And with everything in its place you can make an inventory of your most valuable items, important if your home is struck by a burglary, fire, flood, earthquake, or other disaster.

Tip: While you’re walking around, check the moving parts. Your house is a web of mechanical systems, some of which require your attention. For example a garden irrigation system may need periodic adjustment, to reduce the flow during the rainy season. Also get to know where all the light switches are, and whether things like outdoor motion-sensor lights are still working.

Setting up your home

As soon as you can—even before you’ve unpacked your toothbrush, if possible—give yourself a complete tour of your house. Open every cabinet and closet and measure the areas where you might place your larger items of furniture. Then plan for what should go where, using the following tips:

• Design multiuse spaces. Some rooms may have more than one use—in fact, you can create zones within rooms by arranging the furniture appropriately (for example, not lining it up around the walls.) Picture household daily activities, then figure out the most logical, accessible places to place furniture and store accessories to support those activities.
• Store the largest things first. There are only so many places within a house that will fit your camping equipment or 20-quart electric turkey roaster.
• Watch for light, heat, and moisture in storage areas. Putting linens into a humid closet (perhaps created by a hot pipe running through it) can lead to mildew or discoloration. And in the kitchen, avoid storing oils in hot or sunlit cabinets.
• Put breakables in safe places. Particularly if you live in earthquake territory—which is wider than you’d imagine—don’t put heavy or breakable objects where they might tumble down. Bottled foods, glass objects, and your dinnerware should ideally be kept in low, closed cabinets with latches. Also hang heavy items such as pictures and mirrors away from beds, couches, and places people sleep or sit.

Resource: For more organizing tips: Real Simple magazine and organizing guru Julie Morgenstern both have useful books to keep your place decluttered. And if you want to hire a pro, check out the National Association of Professional Organizers at www.napo.net.

Inventory your goods

If your home is struck by a burglary, fire, flood, earthquake, or other disaster, an up-to-date home inventory will make it easier to deal with police and your insurance company. Without one, you’ll have to create a list of all your missing or damaged property from memory—no small task. Many people go several months before figuring out everything that a burglar stole. And as USA TO DAY’s Christine Dugas notes, “The burden of proof is on homeowners to document their losses. Without some kind of inventory, your insurer may dispute your assessment of the damage.”

After you’ve unpacked, walk through your entire house with a pad of paper and a camera. Don’t forget to visit the garage, attic, and basement. Look for any items worth more than around $50. You’ll most likely find them among your jewelry, clothing, collectibles, CD and record collections, silver, tools, sporting or outdoor equipment, and electronic equipment.

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Take pictures of each item you identify as valuable (or of groups of items, such as your jewelry). Also write down a brief description of each, complete with the make, model, and serial number, if any. If you usually keep the item in one part of your house, for example the garage or bedroom, write the location down, too. This will help you identify what you’ve lost if only one area, such as the garage, is hit. And if possible, note each item’s purchase price, current value, and replacement cost.

You may want to mark expensive items with an ID number such as your driver’s license number. (Electric engraving pens cost about $50.) The ID and serial numbers help police identify stolen goods.

Finally, take a little time to formalize your inventory. Your insurance company can probably give you an inventory form, or you can get software online from the Insurance Information Institute, www.iii.org (click “home,” then “Know Your Stuff”). And don’t forget to update your inventory if you buy or receive something new.

Making Sure Your Home Is Safe and Secure

Your house can be your fortress, your retreat from the outside world, and a place to cozy up and be yourself. Too bad this fortress isn’t made of solid stone and didn’t come with a moat—you’ll need to take some different protective measures.

Preventing crime

Thankfully, most people live in their house for years without it being broken into. Here are some quick and easy ways to prevent uninvited guests.

• Change the locks. If you don’t bring in a locksmith or visit a hardware store, you won’t know who has keys to your front door (the seller’s wacky houseguest from two years ago and several neighbors, perhaps).
• Add deadbolts. If your exterior doors have only regular, pushbutton locks or something similar, you could probably break into them yourself with a swift kick. Every exterior door should have a deadbolt. Call a locksmith or follow the instructions on a site like www.diynetwork.com.
• Prevent sliding doors from being forced open. Even with a lock, putting a dowel or bar in the tracks of sliding glass doors offers backup security.
• Reset the alarm code. If the house came with an alarm system, choose a new number you’ll remember, share it on a “need to know” basis, and keep the owners’ manual on hand in case of false alarms, dead batteries, and other issues.
• Consider buying an alarm system. Even the warning signs from the alarm company are a deterrent—burglars are looking for an easy mark, not to break into Fort Knox. There’s a wide array of choices at different price points, from systems that simply make a loud noise to those that are monitored by a professional company. With more advanced systems, company representatives should help you with customized design—speak up if, for example, you plan to leave certain windows cracked open at night or get a pet—and they’ll likely do the installation, too. Tell your homeowners’ insurance company once the system is installed, which will probably lower your rates.
• Make a habit of locking your interior garage door. You don’t want a thief to gain entry to your garage and then have easy, hidden access to your house.
• Talk to the neighbors. Ask what security measures they’ve found useful or necessary, and whether a neighborhood watch group is in place. Even without formally creating such a group (in which you register with the city and it puts up signs warning criminals away) many neighbors find it useful to exchange daytime and evening phone numbers, so that you can call each other if you see something strange going on.
• Evaluate the need for additional changes. Take a walk around your house to see what should go on your longer-term to-do list. Pretend you’re a burglar, and think about how you’d break in and how easily you’d be seen by others doing so. Make sure the outside of your property is well-lit at night and doesn’t contain obvious hiding places or trees whose branches can be used to climb in through windows. Planting holly, roses, and other prickly or thorny plants is also a recommended burglar deterrent.

Preventing damage from disasters, big and small

Natural disasters don’t strike homes nearly as often as the TV news would have you believe. And even when a true disaster strikes, many homes and their inhabitants come through just fine. But it’s not all due to sheer luck. Some advance preparation will help your house and family successfully deal with a storm, fire, or earthquake. Here are your first steps:

• Check smoke detectors and sprinkler systems. Even though your home inspector should have told you whether your smoke detection or sprinkler system meet local codes, it’s up to you to keep them in good working order. All smoke detectors have a test button, which, when pressed, should cause a shrill, obnoxious noise or a flashing light that tells you it’s working. The battery normally lasts no more than a year. If the unit has no battery, it’s wired into your home’s electrical or fire alarm system, so you’ll need to check the circuits or get a new unit. In addition, no matter what the codes say, consider installing smoke detectors in every bedroom or in hallways that lead to bedrooms. And if you’ve bought a condo or co-op in a building with a sprinkler system, make sure you know how it works and where your unit’s sprinkler heads are.

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• Learn where your shutoff valves are. Every member of your family should learn how to shut off the gas, water, and electricity in case of pipe leaks after a disaster, or in situations where electricity may either come into contact with water or spark gas fires. Your home inspector may have pointed out your gas and water shutoff valves, or you may need to ask your utility company to help you locate them. (Don’t turn the gas off for practice—only a professional can turn it back on.) Your main electrical panel may be inside the house or on an outside wall. It’s best to shut off the individual circuits before the main breaker. Unplug appliances before you turn the power back on, to avoid a surge.
• Clear dead brush. To reduce the impact of fires, it’s wise to create “defensible space” around your home by clearing away brush and keeping your roof clean of dead leaves and pine needles.
• Plan an escape route. In a panicked situation, your halls might feel like a labyrinth—especially for children. Make sure every family member knows all entrances and exits, how to get out from the second floor, and where to meet up or who to call (preferably someone who lives far away and wouldn’t be affected by a local disaster) if separated.
• Childproof everything. If you’re a parent, you’ve probably done this before. Put chemicals and cleaning supplies out of reach, and add child safety locks to all cabinets. Also put important phone numbers (your cell phone, police, fire department, health care providers, and more) as well as your address on a bulletin board or refrigerator for babysitters.
• Read the directions on your fire extinguisher. If you don’t have one, buy one right away.
• Evaluate the need for additional changes. For example, if your house has a swimming pool, make sure it has child-protective gates.

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