subject: The Mistakes To Avoid When Buying a Home [print this page] The Mistakes To Avoid When Buying a Home The Mistakes To Avoid When Buying a Home
Buyer Beware should be the successful axiom for those who allow their emotions to dictate their home buying tendencies. Following the golden brick road to property oz is easier when you know the potholes to look out for along the way. No one wants to lose a leg along the way, so here are some tips to help you get to your goals sooner:
* DON'T treat your home the way you treat your stock portfolio. It's 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.
* DON'T buy beyond what you can afford. It's easy to fall into that all-you-can-eat attitude, especially if this is your first home purchase. You "want it all" when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure that the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign on the dotted line. Your realtor can help you crunch the numbers ahead of time, to help you determine what you can comfortably afford.
* DON'T 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 you're unsure of your options. For instance, what seems like an attractive rate now may increase dramatically a few years down the road.
* DON'T treat your home the way you treat your stock portfolio. It's 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.
* DON'T 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 you're 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.
Avoid all the potholes to Buying a House on your way to Property Oz.
