If you are getting your first mortgage and buying your first home, there are some mistakes you want to avoid, and things you want to add in to your monthly mortgage. You want to add the annual taxes, home insurance, and HOA fees into the monthly payment if possible. This way you never get behind and put the ownership of your home in jeopardy.
You may think that you are better off paying your taxes separately, but if it comes to the end of the year and you don't have the money, you can be in a lot of trouble. Have your taxes added into your mortgage, and then at the end of the year the state and federal tax divisions will let you know if you owe anything, or if your taxes were overestimated. This way you know that your taxes will be paid on time each year. Have your taxes assessed when you move in to make sure you don't pay too much.
It's usually necessary for you to put a year of homeowner's insurance down before you close on the home loan, so even if you default on your mortgage, your home is covered against any damages. You will continue to pay monthly so that the house is always covered a year in advance, and you can have this amount added into your home mortgage as well. Talk to a company like Accredited Insurance Group Inc for more information.
This is ideal so you don't have to put up a lump sum during the year, and so you don't fall behind on your homeowners insurance. Make sure that your homeowners insurance policy covers all potential mishaps, and even hotel stay if you can't stay in the property.
Are you to strapped for money to pay your HOA fees when you first move in? If you are, or if you don't want to pay all of the fees at once, have them split up and put into your mortgage. This way you don't ever owe fees to your HOA or are past due. Often people in your neighborhood are on the HOA board, so you don't want them to think you don't pay your bills.
If you want to get ahead on your mortgage and gain equity in your home, keep all of these things tied into the payments but send more money to the mortgage company each month. You can start paying off your home a lot faster than you originally thought just by adding more money to the payment that you make to the mortgage company each month, saving money on the interest you pay over time.