5 Home Buying Mistakes You Should Know About
For some people, buying a house is just a matter of signing papers and following instructions. That seems pretty safe right? Wrong. Not, everything works out the same for everyone. What those blind followers don’t know is that mistakes can be made when buying a home. These mistakes will impact the future of your home ownership and your financial freedom. So here’s our list of five home buying mistakes you should know about:
Don’t Buy the Wrong House
You’ve been scouting the beautiful brick home with four bedrooms, three bathrooms and a white picket fence for months now. It’s easy to picture your life in the place that looks just how you imagined it. However, getting into the right home is more about your needs and how the buying, financing and selling of that home will impact your financial future. Most first time home buyers are so excited at the prospect of owning their own place that they often have their hearts set on something they’ve not yet been approved for. Find out what’s in the budget for you! Visit with a loan officer and take a good luck and where you can reasonably and affordably live. This will help refine your search so you’re not wasting time on homes outside of your budget. Who knows, you might qualify for a nicer home than you were thinking!
Keep Some Money in Savings
Putting money down on a house is extremely important! But at what cost? Be sure to always keep a healthy “rainy day” fund for any of life’s surprises in your savings account. Putting all of your hard earned cash into a down payment on your house will diminish your liquid assets and leave you house poor. Plus, who is going to pay for the re-modeling your spouse is already excited about? Trust us on this one. Less is more.
Be Aware of the Extras
Property taxes, mortgage and home insurance, and closing costs. Those are some of the least fun terms ever! Be sure to prepare for these additional expenses as your house is not just a monthly mortgage payment. Helpful tip: with enough money down you can erase mortgage insurance costs entirely! There are major advantages to getting ahead of your payments. Property taxes are required by everyone but closing costs can be negotiated with the seller. Be sure to shop some good deals on homeowner’s insurance. You’ll want to save wherever you can.
Be Aware of Your Credit and Work On It
Any idea what your credit score is? What about your spouse’s? You might not realize the implications of your monthly bills and other financial obligations. Working to build good credit will allow you to explore lots of different options when it comes time to buy. Lenders want to see a history of responsible decisions and bills paid on time. Poor credit or no credit at all can limit your options. Good credit also translates to better rates on other major purchases like a car! If you’re not sure what constitutes a good score, visit myfico.com and learn all you can. A good financial reputation goes a long way!
You Can’t Do It All Yourself
It is your decision to buy a home. But remember, there are crucial people that need to be a part of the process to help it go smoothly. You don’t want to have any regrets or fail to do the research because it is intimidating. Real estate agents should know the market very well. They are aware of homes that will suite both your wants and needs. Also helpful lenders will educate you during the buying process and work with you to help improve your qualification to get into the right home. They want what’s best for you to so be sure to heed their advice. They’ve scene almost every situation and do this for a living. Don’t be afraid to ask questions along the way.
Boom! You just took a crash course for “what not to do”. Home ownership is fun and we want to help make it easy for you! Just make sure you take your time and do it the right way. Our friendly and professional staff loves to help people understand the process as we have your best interest in mind.
For more information about buying a home visit: http://www.northerntitle.net/