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5 Mistakes To Avoid Before Buying A Home
Buying a new home is an exciting and stressful time – from open houses to signing your closing paperwork – it’s not unusual for mistakes to happen.
Here are five common mistakes homebuyers make and tips on how to avoid them!
Shopping Before Your Pre-Approved
Shopping for a new home can make you giddy at the opportunity for new and better things. It’s important to get pre-approved before you begin your search, so that you don’t try stretching your budget further than you can handle.
Remember: Just because you were approved for the higher amount doesn’t mean you have to spend it. Not sure which percentage of your budget should be spent toward housing? Check out this breakdown of the 50/20/30 Rule
Choosing the Wrong Agent
I’m sure you have a friend that has a friend that knows someone who is a real estate agent, but choosing an agent that knows the ins and outs of the local market and is compatible with you is very important.
A good agent listens to your needs and wants, and takes the time to answers your questions.
They also know about other available properties in the area that will give you a competitive edge when you’re ready to make an offer. Most of all, you need to choose an agent you trust – one you feel comfortable going to with questions, concerns or doubts.
Using All Your Available Income
Homeowners have additional expenses such as property taxes, condo fees and maintenance that renters do not. It’s important not to spend all of your available income on your housing because you may need to budget for extra costs once you move in.
If you are buying a home in a community with a Property Owners Association, it’s a good idea to budget for these additional payments.
New House = New Everything.
You’re buying a new home, now you need new furniture! Wrong. Just because you are buying a new home does not mean you need to fill it with all new things. If your new home has an additional spare bedroom or a living area, you don’t need to go out and rack up your credit cards just to fill your house on move-in day.
Move in to your house first and then decide what you really want or need. Making large purchases before you close on your house could also cause you more headaches when you go to close because it could affect your debt-to-income ratio.
Becoming Emotionally Attached to One Property
Do NOT become emotionally attached to a property before all the paperwork is signed. As humans, we have the tendency to let our emotions take over. When you’re in the process of buying a new home, look at it as a financial transaction. If you’re emotionally attached and you’re negotiating, your emotions could potentially work against you financially in the long run.
You need to know when to stand your ground and when to walk away. Putting your emotions aside will help as you consider future events that could impact your ability to repay your loan, such as job security, interest rates rises, health and starting a family.
A native of New Jersey, Kristine attended Rowan University with a major in Early Childhood Education. After teaching kindergarten for one year, she discovered her passion for real estate and subsequen....
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