By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
Most people dream about being a homeowner. This is a great goal to have. However, you do not want to make a mistake that can make the process of buying a home more difficult. There are many mistakes that people make when buying a home.
Not Saving Up for a Down Payment
You need to save up for a down payment before you buy a home. Many people require that you make a down payment of at least 10 percent. This means that if you plan on purchasing a home that costs $100,000, then you should save up at least $10,000. Keep in mind that the bigger your down payment is, the more you can save on your mortgage.
Looking for a Home Before You Get Pre-Approved
Before you look for a home, you need to find out how much the bank is willing to give you. That is why it is a big mistake to look for a home without getting pre-approved by a lender. Your income, down payment, credit history, employment history and the value of the property you want to purchase are some of the factors that will determine whether you get pre-approved for a loan.
The pre-approval letter will give you an idea of the price range that you should be looking for. This will make it easier for you to narrow down your search.
Buying a Home When You Have Debt
Your home will likely be the most expensive purchase that you ever make. Debt can make it a lot harder for you to buy a home. If you get approved for a mortgage, then it will be a lot harder for you to pay it if you have to pay off several debts. You should pay off your credit card bills, student loans and personal loans before you try to get a house. Not only will it be easier for you to budget for a home, but it will also help you boost your credit score.
Choosing A Home That Is in the Wrong Neighborhood
When people are looking at Sunshine Coast real estate, they only think about the type of home that they want. They think the number of bedrooms and the amenities that the home has. However, you will need to think about the type of neighborhood that you will be living in.
The proximity of supermarkets, schools and the safety are some of the things that you will need to take into consideration. It is also important to note that some homes are not worth the price because of the neighborhood that they are in. That is why it is a good idea for you to talk to a real estate agent before you buy a home.
Forgetting About the Closing Costs
The mortgage is not the only cost that you will need to consider when you are buying your home. The closing costs are something else that you have to factor into the cost. This includes the property taxes, legal fees, inspection fees and insurance. These costs can add up to three or four percent of the value of your home.
The moving expenses are something else that you will need to take into consideration. The cost can vary depending on how far you will be moving. You should plan ahead for these costs and resist the urge to take money out of your emergency fund.
Purchasing a Home That Fits You Right Now
A home is a long-term investment. That is why you should buy a home that you plan on staying in for a long time. Selling a home is not always easy, so you should make sure that the home you purchase is one that will fit your needs for the long-term.
Failing to Get the Repairs Done Before You Close on the Home
You should have someone inspect your home before you move into it. The home may look great on the inside and outside, but it may still have problems that need to be fixed. You should have issues fixed before you move into your home. If you don’t get those problems fixed before you move in, then you will be responsible for the costs.