Introduction: Owning a Home Is Just the Beginning
Hi, I’m Trevor Sanders, owner of SD-Loans. As a San Diego mortgage broker, I know firsthand—congratulations! If you’re reading this, chances are you’ve recently bought a home or you’re in the process of closing on one. That’s a big deal, especially here in sunny (and pricey) San Diego. But once the keys are in your hand and the boxes are unpacked, what’s next? Let’s talk about what happens after the mortgage. Because smart financial planning doesn’t stop at the closing table—it’s what helps you protect your investment and thrive as a homeowner.
Budgeting for the Long HaulYour Mortgage Is Just the Start
Sure, your monthly mortgage is probably your biggest expense. But owning a home comes with a few new players on the field: property taxes, insurance, utilities, repairs…and, yep, that new water heater you didn’t know you’d need in year two.
Take your monthly housing budget and add a buffer—ideally 10–15%—to account for these costs. Trust me, your future self will thank you.
Create a Realistic Monthly Budget
Here’s what a healthy post-mortgage monthly budget might include:
- Mortgage payment (principal + interest)
- Property taxes (more on that in a second)
- Homeowners insurance
- Utilities: gas, electric, water, trash, internet
- HOA dues (if applicable)
- Repairs and maintenance fund
- Emergency savings contribution
Using a budget app or spreadsheet can keep things organized and help you stay ahead of unexpected costs.
Don’t Skip the Emergency FundWhy Homeowners Need One More Than Ever
When you were renting, a broken faucet was your landlord’s problem. Now? It’s yours—and it might come with a $300+ price tag. Having an emergency fund set aside can take the sting out of those surprises.
I recommend building up 3–6 months of living expenses, especially if your income varies or you’re self-employed. Start small if you have to. Even $50–$100 a month adds up over time.
Keep It Separate and Accessible
Your emergency fund should live in its own high-yield savings account—not your checking or investment account. You want it easy to reach in a crisis, but not so easy that you dip into it for a weekend getaway.
Stay Ahead of Property TaxesSan Diego’s Property Tax Breakdown
In California, property tax rates are typically about 1.1% of your home’s assessed value, but this can vary based on local bonds and special assessments. For a $750,000 home in San Diego, you’re looking at $8,250+ annually—or nearly $687 per month.
Your lender may collect property taxes with your mortgage payment, but double-check your escrow account to be sure. If not, plan for these bills ahead of time so they don’t catch you off guard.
Watch for Supplemental Tax Bills
First-time homeowners in San Diego often forget this one: you’ll likely receive a supplemental tax bill within your first year of ownership. It’s a one-time charge based on the difference between the previous and new assessed home values.
Set aside a little extra in your first year just in case.
Prioritize Home MaintenanceA Little TLC Goes a Long Way
Preventative maintenance is the key to avoiding costly repairs down the road. Make a seasonal checklist and stick to it. Here are a few basics:
- Change HVAC filters every 3 months
- Clean gutters in fall and spring
- Drain and flush water heater yearly
- Check caulking and weather stripping
- Test smoke and carbon monoxide detectors
Budget for Annual Upkeep
The general rule? Set aside 1–2% of your home’s value each year for maintenance. For a $700,000 home, that’s $7,000–$14,000 annually. That might sound steep, but it includes everything from pest control to roof inspections and appliance repairs.
Don’t Forget About InsuranceHomeowners Insurance vs. Earthquake Coverage
Your standard policy covers fire, theft, and liability—but it doesn’t cover everything. Earthquake insurance is often a separate policy in California. Considering our region’s seismic activity, it’s worth talking to an insurance broker about whether this added coverage makes sense for your property.
Plan for the Future—Not Just the NowSet Long-Term Goals
Do you want to renovate? Refinance? Buy a second home someday? Planning ahead financially now helps keep those options open. Consider opening a home improvement savings account or talking to a financial advisor to map out your next steps.
Consider Life Insurance and Estate Planning
It’s not the most fun topic, but if someone depends on your income, make sure they’re protected. Life insurance, a living trust, or even a will can offer peace of mind that your home—and the people you love—are taken care of no matter what.
Bonus Tips for San Diego HomeownersEmbrace Energy Efficiency
Upgrading to energy-efficient appliances, installing a smart thermostat, or even going solar (if it fits your budget) can pay off big in utility savings—and there are often California rebates and incentives to sweeten the deal.
Know Your Neighborhood Resources
Many local organizations offer free or low-cost homeowner workshops, energy audits, and grants for improvements. The City of San Diego has great resources online, and we’re always happy to point you in the right direction at SD-Loans.
You’re Not Alone—We’re Here to Help
Homeownership is a milestone—but it’s also a marathon. The key to long-term success? Planning ahead, keeping a budget, and having the right support system.
At SD-Loans, we’re not just here to get you the keys—we’re here for the long haul. If you ever have questions about refinancing, upgrading, or simply want advice on how to manage your homeowner expenses, I’m just a call or email away.
Let’s keep building your future—together.
FAQs
Q1: What’s a good first step after buying a home?
Start by reviewing your new monthly budget and setting up an emergency fund if you haven’t already. A solid foundation makes everything else easier.
Q2: Should I pay extra toward my mortgage each month?
If your emergency fund is solid and you’re not carrying high-interest debt, making extra payments can help you save on interest and pay off your loan faster.
Q3: Is home maintenance tax-deductible?
Generally, regular maintenance isn’t tax-deductible, but certain energy-efficient upgrades or improvements related to a home office might be. Check with a tax pro.
Q4: How can I lower my property taxes?
You can appeal your property tax assessment if you believe it’s too high. You may also qualify for exemptions depending on age, disability, or veteran status.
Q5: What if I want to move or upgrade in a few years?
That’s where long-term planning comes in. Keep your home in great shape, build equity, and stay in touch so we can help with your next move or refinance.
