Are you planning to buy a home? If your answer is ‘yes’ then this is the right article for you to read. Buying a home is a big investment and before you make that investment be fully prepared. There is a lot involved in buying a home and your agent will take you through all that needs to be done to get ownership. However, we are here to tell you what mistakes you should avoid so that you do not have any financial regrets. Take a look:
1.Thinking of your home as a short-term investment
When you buy a home that you want to live in, you must know that this is going to be a long term investment. The value of your home may even depreciate over time instead of appreciating and you must be prepared to face such a situation. You may even lose some money on your home. So, if this is a short term investment and not for living, then you may want to consider investing the money in a mutual fund instead of buying a home. Again, if you are buying real estate to be able to sell it off for a profit, that requires more in depth research about the chances of the value of the home appreciating.
2.Considering mortgage payment and your rent as the same
You may be renting an apartment now but that does not necessarily mean that you will be able to afford that amount towards mortgage payment. Buying a home involves a lot of additional costs like home inspection, escrow, HOA costs, insurance premiums, property taxes and the like besides your mortgage. So, you will probably find out that you can afford much less than your current rent once you make an assessment of all the additional expenses. A lot of homeowners have made the mistake of underestimating these additional costs of buying a home but after reading this article you should know how to avoid such a mistake.
3.Having no plan for an investment
The biggest plan you need to make before you buy a house is to save as much money as possible. That does not mean you stop paying on your credit card debts because you need to have a low debt-to-income ratio and clean up your credit report. If you want to score the home of your dreams, start cleaning up your finances. Not planning ahead is a big mistake home buyers make and either end up losing their home or getting into financial distress.
4.Taking too much time to come to a conclusion
If you are getting a good offer on a home you want to buy and the other conditions are in place, take the offer. Buyers often make the mistake of taking too long to make a decision because of cosmetic issues like interior decor or the color of the paint on the house and end up paying more for a house they could have bought for much lesser.
5.Not doing enough mortgage broker shopping
Assumptions when investing in a property is a big mistake resulting in a bad purchasing experience. Do not make the mistake of not shopping enough brokers who you can trust. In addition, try and learn about the types of loans available and related terminology. Also, speak with several lenders and find out how your rates could be affected. Do not forget to compare the fees that different brokers charge. Different mortgage companies work in a different manner.
Angelina epitomizes integrity, energy, hard work, and creative service on every detail of real estate market. She has worked every aspect of the industry while being associated with http://agentace.com/ and has since built a successful career in real estate for over several years. He loves to read, write, and playing golf in his free time.