Avoid Home Buying Mistakes

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If you plan on moving anytime soon again, then do not buy a house. Many people become excited with the thought of becoming a homeowner even when they know they will be moving again soon. Some feel their money is going to waste by renting. If you are unsure if you would be able to stay at your new home for more than 2 years, than its probably best to not purchase a home. You might lose more money than the equity you have put down.

If you have a set budget, do not blow through it. Most homebuyers set a budget and then completely disregard it once they find a house out of their price range. Your budget was set for a specific reason, so make sure you stick to it and remove your emotions when purchasing. One way to combat this mistake is to get preapproved for loan before you go house hunting.

When you purchase a home, there’s not the same costs involved as when you’re paying rent. Things that are normally covered by the landlord will now be your expense when owning your home. Costs such as property taxes, HOA fees and even home owners insurance along with maintenance costs are usually something home buyers don’t even think about before purchasing a home. A homebuyer can quickly find themselves over budget once these costs are added along with hidden fees.

Make your down payment worth it. Without a solid down payment, it could equal to higher mortgage payments. Interest payments are also increased. Most of the market before 2008 was in a decline due to home buyers putting a lower down payment than necessary. You should look into at least 20% as a down payment.

Always take advantage of inspections. Sometimes there could be a very nice house on the outside but there could be several other issues such as leaky pipes, insulation not properly installed, etc. A potential homebuyer could be responsible for any potential problems.

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