HOME BUYING TRAPS TO AVOID
A house is certainly one of the best long term investments you can make, but most first time purchasers are bound to encounter pitfalls along the way which can cost them a lot more than they are planning to spend for their home. Here are the most common mistakes to avoid when choosing your residence:
Uncertainty of stay
Because some are thrilled at the idea of having their own place, they tend to quickly jump into the act of buying one, without even thinking whether they are really ready to settle in one place. Sometimes, they suddenly decide to relocate, wasting all the effort and cash they have spent on their initial decision.
While paying down equity is certainly better than handing over your rental cash to your landlord, make sure that you actually intend to remain in the area for a long time.
Budget over emotions
Usually, individuals have an allocated money specifically for the purpose, however, the moment they browse through available homes, the budget is forgotten and crushed by the fantasy of your dream house.
Purchasers fail to take into account unforeseen circumstance such as an income decline, and they will be facing the consequences of it once they eliminate logic and let their sentiments decide. To avoid this, opt for a pre approval of loan beforehand to set a limit and view only those structures below that boundary.
Forgetting extra expenses
Aside from the overall cost of property, there are still additional costs such as those for maintenance and taxes. So even if you have a budget, it can fall short once all these other expenditures pile up.
Calculate these add-ons to your monthly mortgage to get the real value of a house, so you would be more ready to take out some more from your funds.
Among the causes of the 2008 financial housing crisis, wherein lenders give mortgages to individuals with little or no down payment. Doing this will entitle you to higher monthly mortgage fees, along with the burden of interest payments. You may be fooled by the thought of a lesser compensation at first and giving higher ones with a salary level you might already have, but keep in mind that this is exactly the kind of mentality that engulfed people before defaulting nine years ago.
Usually, even the most beautiful of houses have hidden flaws, which cannot be discovered by buyers at first glance. Examples of these are leaky pipes, faulty insulation, and termites. This is why it is important to hire a professional inspector, as these damages may drain your pockets in the long run. It will save you money, and from investing in something of little quality.
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