Avoid Mistakes When Purchasing a HomePosted Friday, July 18, 2014
Searching for a new home is an exciting prospect for you future, both personally and financially. Not only will you be building family memories within its walls, but you’ll also be building equity that can give you financial security. Buying property has an impact on your future, so you want to ensure you make a wise decision.
Purchasing a home is an emotional process; it’s easy to build your hopes up and get carried away. Keep yourself in check and prepare for this process by reviewing the property purchasing mistakes below.
- Neglecting to shop around for pre-approved interest rates – Checking into mortgage rates from different lenders could save you big bucks in the long run, especially if you have good credit. Also, getting pre-approved will help you set a budget and pinpoint what you can actually afford.
- Getting emotional – Even if you absolutely love a house, don’t lose your head! Evaluate the price, consider the resale value and make sure it’s a smart investment. Even though you love it at first sight, you might come to hate it later if it causes you financial heartache.
- Having no down payment – Save, save, save! Anything above 20% is ideal when it comes to purchasing real estate. Cash over this amount is extremely appealing to lenders and saves you from having to purchase Private Mortgage Insurance (PMI).
- Buying the biggest house on the block – While it might have all the bells and whistles, you’d be much more likely to increase your investment by purchasing a smaller house in a nice neighborhood.
Don’t get caught in a trap and find yourself locked into a mortgage that stresses your finances. Hire a good real estate agent to help you find a house that is a secure investment for your future.