As 2025 approaches, it’s the perfect time to assess your financial health and set the stage for success in the new year. Whether you’re a current homeowner or planning to buy your first home, a year-end financial checkup can help you make informed decisions and align your goals. At Presidential Bank Mortgage, we’ve created a handy checklist to guide you through this process.
For Homeowners:
1. Review Your Mortgage
Check your current mortgage balance, interest rate, and remaining term.
Assess whether refinancing could save you money or help achieve other financial goals, such as consolidating debt or accessing equity for renovations.
2. Evaluate Your Home’s Value
Research your home’s current market value using online tools or consult a local real estate agent.
Compare your home’s value to your outstanding mortgage balance to understand your equity position.
3. Check Your Home Insurance
Review your policy to ensure adequate coverage for your home and belongings.
Update your policy if you’ve made significant home improvements or purchases.
4. Plan for Property Taxes
Confirm your property tax payments are up to date.
Adjust your budget for any expected changes in property tax rates for the upcoming year.
5. Create a Maintenance Budget
Review your 2024 home maintenance expenses.
Set aside funds for routine upkeep or unexpected repairs in 2025.
6. Maximize Tax Benefits
Gather documentation for potential tax deductions, such as mortgage interest or energy-efficient home improvements.
Consult a tax professional to ensure you’re taking advantage of all eligible homeowner tax benefits.
7. Consider Energy Efficiency Upgrades
Assess your home’s energy efficiency and identify cost-saving upgrades, like installing smart thermostats or adding insulation.
Explore federal or state tax credits for energy-efficient improvements.
For Prospective Buyers:
1. Evaluate Your Credit Score
Obtain a free credit report and check for errors or areas for improvement.
Pay down high balances and avoid opening new credit accounts to improve your creditworthiness.
2. Save for a Down Payment
Review your savings plan and determine if you’re on track to meet your down payment goal.
Consider setting up an automated savings plan to grow your funds faster.
3. Research Loan Options
Familiarize yourself with different mortgage programs, such as FHA, VA, or USDA loans, and down payment assistance programs.
Schedule a consultation with a loan officer to explore options tailored to your financial situation.
4. Get Pre-Approved
Work with a mortgage professional to get pre-approved for a home loan.
Pre-approval gives you a clear budget and a competitive edge when house hunting.
5. Review Your Budget
Analyze your current income, expenses, and savings to determine a comfortable housing budget.
Account for additional costs like property taxes, homeowners insurance, and maintenance.
6. Monitor Market Trends
Stay informed about local real estate trends and interest rates.
Consider timing your purchase to take advantage of market conditions.
7. Build an Emergency Fund
Ensure you have a financial cushion to cover unexpected expenses during the homebuying process or after moving in.
Aim to save 3–6 months’ worth of living expenses.
Start the New Year Strong with Presidential Bank Mortgage Whether you’re preparing for homeownership or looking to make the most of your current property, a year-end financial checkup is a critical step. At Presidential Bank Mortgage, we’re here to help you navigate your options and make smart decisions for the future.
Contact us today to schedule a financial review or learn more about our mortgage solutions. Let’s make 2025 your best year yet!