Owning a house is a long-term investment. Here is a list of what to watch out for after transitioning from renter to homeowner.

1. Pay mortgage interest on time

Make sure you pay the monthly interest on your mortgage on time. Delaying or defaulting on your interest payments will harm your credit score. For renters, defaults may or may not harm their credit scores. If you have rented a house from a large company, the chances are high that defaults end up on your credit report. 

When your down payment is less than 20 percent you usually have to pay for Private Mortgage Insurance (PMI). The PMI premium is paid monthly as part of your mortgage payment. More information can be found here.

2. Pay utility bills on time

You are responsible for paying your utility bills (phone, electricity, water, gas). Paying utilities on time will not increase your credit score, but remember that delaying or defaulting will bring down your score. For renters, in some cases, the landlord deals with the utility bills.

3. Tax deductions and tax credits

You can claim a federal tax deduction for mortgage interest and local property taxes. But remember that you can make use of this provision only if you are itemizing your tax deductions and not taking the standard deduction. You are better off when the sum of your itemized deductions is greater than the standard deduction amount. If your mortgage interest and property taxes are high, itemizing is likely to reduce your federal tax burden.

Taxpayers who don't itemize but pay property tax and are in the single, head of household and qualifying widower categories will get up to $500 extra deduction in 2009. Those married and filing jointly get up to $1,000. There is no income limit for this extra deduction.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for first-time buyers who bought houses on or after January 1 and before December 1 this year. The income limit for single taxpayers is $75,000, and $150,000 for married taxpayers filing a joint return. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. Buyers need not pay later unless the home ceases to be their main residence within three years following the purchase.

More information can be found on the IRS Web site and the National Association of Home Builders Web site.

4. Repairs and maintenance

Every repair is up to you. The luxury of turning to your landlord for quick (and not-so-quick) fixes is no longer an option.

5. Long-term commitment

Remember that buying a house is a long-term commitment. It is easy for renters to move if they are dissatisfied with the building or neighborhood, or if a job or personal matter demands shifting to a new city. Selling a house is a cumbersome process, especially during an economic downturn. You could spend around 10 percent of your home's value in agent fees, closing costs and moving expenses.