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Tips to Avoid Common Mistakes During the Home Buying Process
It’s easy to get caught up in the home buying process, and unfortunately, many people get so preoccupied trying to find the perfect home that they make mistakes along the way. These tips will help every home buyer avoid major mistakes that could cost them time and money.
Every buyer should set a budget and stick to it. This allows buyers to set aside a down payment and get into the habit of preparing the mortgage payment every month. Whether using a pencil and paper or an online money management tool, setting and sticking to a budget will prepare buyers for the financial commitment of owning a home. It also helps buyers figure out exactly how much they can afford.
Every buyer should have an emergency fund set aside. This should be separate from any money saved for the down payment! Many buyers drain their savings to take advantage of a good deal, and then they don’t have adequate savings leftover to maintain the home or deal with emergencies. Buyers should have at least three to six months worth of living expenses saved, aside from what they’ve saved for the down payment.
When finally ready to house shop, it’s wise for buyers to pre-qualify for a mortgage. Anyone would be let down after finding their dream home only to discover that they don't qualify for a loan in that amount or they don't qualify at all. The whole shopping process is easier when the buyer can set a specific budget at the amount he or she was actually pre-approved for. This helps buyers ensure they aren’t wasting their time looking at homes that are out of their price range.
Buyers should never make big decisions based on emotion when purchasing a home or any other expensive asset. Often, people fall in love with the architecture or character of the home and ignore the warning signs, only to realize they have major problems after they’ve already signed the mortgage contract. Buyers who avoid getting too emotional or attached to a particular home are generally able to find good value homes because they can analyze the buying situation objectively.
Conscientious buyers who do their homework are able to snag the best deals, making their home a very worthwhile investment for their family.