Buying a house is always an exciting time in one’s life. You get to check out all kinds of places and learn about neighborhoods you never knew existed. The real excitement comes when you end up choosing a property that has stolen your heart. One that you will soon call home.
It doesn’t matter whether you are a first-time buyer, or are up/downsizing. What does matter is that you decide to buy when everything feels right. The sad truth is many folks want to purchase properties but make monumental mistakes when doing so!
If you don’t want to end up making a bad decision, be sure to keep in mind these tips before you sign on the dotted line.
#1: Having Too Much Debt
Let’s face it: everyone owes money to some degree. There is nothing wrong with being in debt, believe it or not. It only becomes a problem when you struggle to pay it all back!
If you live your life paycheck to paycheck, you should reconsider buying a home. Instead, work on ways to reduce your debt to a more manageable level:
- Consider debt consolidation;
- Looks at ways to increase your income (get a new job, do a sideline gig);
- Sell any valuable assets that you seldom use or no longer need.
#2: Spending Too Much on Your Dream Home
Another typical mistake that new and past home-buyers alike make is overspending. Sure, you may have fallen in love with your dream home. But, should you get it even though you can’t afford it?
When you look at homes for sale, be sure to have a fixed budget in mind (and stick to it). That way, you won’t have to worry about how you will make your mortgage payments!
#3: Forgetting About the Cost to Move Home
When you agree to buy a property, your focus will soon turn to packing your stuff up and moving. That’s fine unless you forgot to factor in the cost of your moving expenses!
It’s not uncommon to spend around $1,000 to move home, and that’s with doing some of the work yourself.
One tip you could take on board is to sell any bulky items you no longer want before you move. That way, the cost to move your worldly possessions will be lower.
#4: Settling for the Wrong Mortgage
It’s always good to know that you’ve been pre-approved for a mortgage. While that is true, some people tend to go for the wrong mortgage.
When you look at mortgage offers, be sure to scrutinize the interest and fee details. After all; the last thing you want to do is pay too much money for your home loan!
#5: Passing on Fixer-Uppers
There are always properties on the market that have a low price, usually because they need some work. On many occasions, such homes only need light cosmetic repairs or updates.
Don’t pass on these types of fixer-upper properties. If you do the math, you could end up paying less for your dream home. And that’s even taking into account the cost of repairs.