Looking for a Home Before Applying for a Mortgage
It can be tempting to go on sites such as Realtor.com or Zillow to get an estimate for how much house you can afford, but those prices aren’t always accurate. It’s best to collect necessary income documentation and consult with mortgage professional to determine your financing eligibility. This way, you can ensure you’re getting the most accurate and personalized information
Emptying Your Savings
Everyone who has owned a home knows that along the way unexpected repairs pop up. Whether it’s replacing a heater or an increase homeowner’s insurance premium, you must be prepared for the inevitable. For these times, aim to have three to six months of living expenses in an emergency fund.
Underestimating the Cost of Property Upkeep
Becoming a homeowner means taking on full responsibilities of the property and its upkeep. The average homeowner pays around $2,000 on annual maintenance services. These expenses can include common repairs, maintenance, utilities, and the list goes on. It’s best to set aside 1 to 3 percent of your home’s purchase price for annual repairs and maintenance expenses.
Waiting for the Perfect Home
Finding the perfect property is more than a notion! Searching for perfection may cause you pass over solid contenders with the hopes that something better will come along. You have to remember that this is your home now, you have the ability to create a unique environment that best reflects you. The possibilities are endless.
Making Decisions Based on Emotion
It's easy to get attached to something that isn't in the best interest in the long run. Remember, this is an investment more than anything. No matter what house you buy, it will not change the fact you are about to make thousands of memories and create a space that is truly yours. Finding a way to marry the emotions draw and a sound financial decision is key.