Buying a house is one of the most exciting moments in a persons life
. Some buyers get overwhelmed by the moment and don't think clearly in the procress. This can lead to huge pitfalls that take away the pleasure of the process. Here are some tips to avoid making the most common mistakes:
*NEVER treat your home the way you treat your stock portfolio. Its unrealistic and unwise to expect your housing investment will always appreciate as quickly as high-risk stocks or bonds. Buying for lifestyle reasons, as opposed to trying to turn a quick profit, will help ensure that you are viewing home purchasing and ownership in the right context.
*NEVER try to time the market. By the time most consumers sense a major real estate or financial market shift, the tables have typically already turned. Instead of waiting for a slim and unreliable window of time and potentially missing out on the perfect home buyers should focus on their own lifestyles and buy when the time is truly right for them.
*NEVER jump into an overly tempting or confusing mortgage. When it comes to down payments and mortgages, if it sounds too good to be true, it probably is, especially if financing outside of major financial institutions. Be sure to read carefully through every aspect of the proposed agreements to fully understand your end of the bargain. Consider getting independent financial advice if youre unsure of your options. For instance, what seems like an attractive rate now may increase dramatically a few years down the road.
*NEVER underestimate the value of a trustworthy real estate agents on-the-ground expertise. While being a savvy buyer and doing ones homework will help on the road to homeownership, a local expert with years of negotiating experience is invaluable when it comes to scouting out the perfect home and closing the deal.
*NEVER jump too soon because of market conditions. Just because the market seems ripe and ready a little forethought will go a long way before you are ready to become a homeowner. If youre renting, the first thing to do is check the terms of your rental/lease agreement. What are the conditions to terminate the contract? Can you sublet to someone else? Rent added on to your mortgage and maintenance can cripple you financially.
Don't let your emotions cloud your judgement especially on such an important investment.