Posted by admin on May 7, 2018
What to Avoid During the Home Buying Process
Every person buying a home, whether it is the first time or not, is excited to find the perfect home. But, that excitement can lead to making some common mistakes. Those mistakes may simply lead to frustration and problems or they may wind up being very costly. Fortunately, there are some helpful tips that can assist you in avoiding these common mistakes during the home buying process.
Overestimating What You Can Afford
Many home buyers get excited at the idea of buying a home, look at the average home prices in their area, start driving around and looking at homes for sale, and think they know what they can buy. The problem is, many home buyers overestimate what they can afford. And, even if you get pre-approved for a particular loan amount that may not exactly be how much you want to spend to live comfortably. Now is the time to take a good hard look at your finances and determine what you can afford.
Going Over Budget
Once you have set your budget the next most important thing to do is actually stick to the budget. It is so easy to want to stretch your budget ‘just a little bit.’ But, it is a slippery slope and once you begin looking at going over budget you may very quickly find yourself in a frightening financial situation that leaves you strapped for cash or unable to close on a home.
Getting Caught Up in Emotions
It is not uncommon for a home buyer to walk into a home, fall in love with it, and be want to give everything they have just to have their offer accepted. The problem with getting emotionally attached to a home that is not yet yours is that you tend to overspend on a home, go over budget, or just make poor choices.
Forgetting the Hidden Costs of a Mortgage and Homeownership
The cost of a mortgage and homeownership is more than just the purchase price of the home. It includes closing costs, taxes, insurance and HOA fees (if applicable). So, be sure to factor those additional costs into your budget.