Don’t Get Ripped Off On Your First Home Purchase
If you do decided that it makes sense for you to consider the investment of owning your own house instead of renting – Congratulations! House hunting is exciting, exhausting, and anxiety-provoking, all with good reason. Unfortunately, many people make mistakes that prevent them from reaching their goal. Learn from these tips to avoid making costly errors that could put a hold on that “SOLD” sign.
Not Knowing Your Budget
Ensure that you have a complete and accurate budget. List all your monthly expenses – excluding rent, but including vehicle cost, student loan payments, credit card payments, groceries, health insurance, retirement, savings, general savings, recreation (e.g. the gym), fees and so on. Be comprehensive and do not overlook major expenses that only occur once a year, like insurance premiums paid annually or annual vacations, or minor ones that come up more frequently and quietly pile up in the background.
Not Getting A Pre-Approved Home Loan
Your assessment of what you think you can afford and the amount the bank is willing to lend you may not agree, especially if you have poor credit or unstable income. Ensure pre-approval for a loan before placing an offer. If you don’t, you’ll be wasting the sellers time, the agents time, and your own time if you enter into as contract and then discover the bank won’t lend you what you need, or that it’s only willing to give you a mortgage that you can’t or won’t accept.
