If you are looking to buy a house, here are a few super simple yet very important tips so you can avoid common home buying mistakes…
Buying a home is exciting and can be a great way to build wealth. Because buying a house is probably one of the biggest financial decisions that you will make in your life, it’s very important to avoid making any mistakes. If you make a mistake when buying a home, you may say more than just Oops!
Here are a few super simple yet very important tips:
Setting the Price Range
This tip is in my opinion one of the most important tips for anyone looking to buy a home. It does not matter if you are a first time home buyer or you have bought several homes in your lifetime!
When you start the home buying process, deciding how much to spend should be one of your first steps. Also getting a Pre Approval Letter from the lender of your choice should be at the top of your list. Here’s the kicker:
Just because the bank will loan you a certain amount doesn’t mean that you have to spend that much!
You can spend less!
I know this isn’t the normal advice that you hear from anyone selling a product. It seems everyone is always trying to get you to spend more.
Especially sales people that are working on commission…
My advice is you should NOT get carried away and buy the most expensive house that you qualify for. Remember that bad things happen to good people. And if something bad or unexpected happens to you, it may be difficult to make your monthly mortgage payments.
Make sure that your mortgage payments will comfortably fit within your budget. If you are paying X in rent now, my advice is to NEVER have a monthly mortgage payment that is equal to or greater than X. Then discuss with your lender what price range you should look at based upon a comfortable monthly payment.
No Home Inspection?
It never ceases to amaze me how some people think they can save a few dollars by skipping the home inspection. Like I said, buying a home is one of the biggest financial decisions you will ever make. And you want to try to save a few dollars?
Listen folks, skipping the home inspection is a MAJOR mistake.
Always Get a Professional Inspection When Buying a Home!
You may think you can look over a home and find every problem. Getting a home inspection means you are hiring another set of eyes that is PROFESSIONALLY trained to find every problem they can with a home.
A home inspection is a must when buying a house!
Failure to Plan
Owning a home is an investment in your future and not a get rich quick scheme. Buying a home is a long term investment. I am not talking about a few months or even 2 or 3 years. Considering that 30 year mortgages are so popular, that should be your first clue as to what kind of time frame you need to be thinking about.
Just a few years ago, most people were staying in their homes only 2 or 3 years. Now the average time people own a home has jumped up to 7 years. This is why you should consider what your needs will be five, ten or even 20 years from now.
The Next Step
Sometimes I worry that being upfront and honest scares some people. I like to say:
Hope for the Best
Plan for the Worst
Don’t let this honesty discourage or scare you. Instead be glad you found someone willing to speak frankly about just how serious buying a home really is. Now that you know these tips, you can avoid making any expensive home buying tips.
Like I said earlier, one of the first steps is setting your budget. That means talking to a trusted, licensed mortgage professional who is trained in providing the best advice on choosing a mortgage that best suits you and your unique needs & budget.
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