Two Essential Steps to Take After Purchasing a Home

Purchasing a home is one of life’s most exciting milestones. After months of searching, saving, and planning, you’ve finally unlocked the door to a place you can call your own. But what happens after the thrill of closing day? While decorating and settling in are important, there are two critical steps every homeowner should take to secure their future: setting up a living trust and obtaining a term life insurance policy.

1. Set Up a Living Trust and Transfer Your Home Into It

A living trust is a legal document that places your assets—including your home—into a trust, allowing you to maintain control during your lifetime while ensuring a smooth transition to your beneficiaries when the time comes.

Why this matters:

✅ Avoid Probate: Without a trust, your home could be tied up in probate court, a lengthy and expensive legal process. A living trust allows your home to transfer seamlessly to your loved ones if something were to happen.

✅ Maintain Control: While you’re alive, you remain in charge of your assets, with full rights to sell, refinance, or manage your home as you see fit.

✅ Ensure Your Wishes Are Honored: A trust ensures your home is passed on exactly as you intend, preventing legal disputes.

Many homeowners mistakenly believe a will offers the same protection, but in reality, a will often leads to probate court. A living trust, on the other hand, keeps everything private and efficient.

***Contact your attorney to make sure you are making the correct choices and changes for your future. They can verify the information we have shared also.

2. Obtain a Term Life Insurance Policy Equal to Your Mortgage Amount

Owning a home is a long-term financial commitment, and a term life insurance policy ensures that if anything happens to you, your loved ones won’t be burdened with mortgage payments.

Why this matters:

✅ Protect Your Home: A term life insurance policy equal to your mortgage balance ensures your family can pay off the loan if you’re no longer there.

✅ Affordable Security: Term life insurance is typically more affordable than other types of coverage, making it an easy and cost-effective way to protect your home.

✅ Family Stability: Losing a loved one is difficult enough without financial uncertainty. This coverage ensures your family can remain in the home you worked so hard to purchase.

Why These Steps Matter

Homeownership isn’t just about having a place to live—it’s about creating a legacy and securing your family’s future. While these steps may not be the most exciting part of buying a home, they are among the most important.

By taking action now, you ensure:

✔️ Peace of Mind – Knowing your home and loved ones are protected.

✔️ Financial Security – Avoiding probate and ensuring mortgage protection.

✔️ A Lasting Legacy – Keeping your home a source of stability for your family.

Take Action Today

Whether you’re a first-time homebuyer or have owned multiple properties, it’s never too late to set up a living trust and secure a term life insurance policy.

🏡 Ready to take the next step? Contact The Red Team today to guide you to start securing your home and future. Call 405-474-4242 for more information or to set up coffee to chat more in detail.