Home buyers need to know all of the things to do before looking at the first home that catches their eye. One such items is identifying home buying mistakes to be avoided. Below are some primary residence purchase errors to look out for:
First of all, is the home affordable? Even if a required down payment is payable, monthly mortgage payments may not be. Believe it or not, many buyers of a home do not live as well as they did before they purchased a home and committed themselves to a thirty year or longer debt.
Another home buying mistake is choosing the wrong location. Does the community in which the home is located have all of the things required to enjoy it? Some communities lack the business and public services required for happy living. Such services and businesses include la library, public transportation, restaurants, movie theaters, grocery stores and department stores.
For those households with children, will the schools provide an adequate education so children will be able to go to college? Getting the best start in life is important and getting a good education helps with that.
If children are a foreseeable event, another consideration is the size of the home. Like it or not, it is wise to buy a house that has four bedrooms and more than one bathroom. In addition, relatives may also come for a visit that will last more than a day or two.
Before you even make an offer on that home of your dreams you want to make sure that the home does not have any construction defects or other problems that you cannot see. If you like the house you should first hire a building inspector to examine the property to make sure that the house is safe for human habitation. You can also buy insurance that will replace any major appliance that fails after you purchase the house. A broken furnace can cost several thousand dollars to fix or replace.
For home buyers that do not pay cash for property, mortgage qualification and financial stability are typically required. During the mortgage loan application process, it should become apparent just how much of a loan is affordable. Budgeting helps maintain that affordability.
It is wise to make a budget that includes annual expenditures. Payment such as real estate taxes, insurance premiums, automobile repair or replacements are all cash outflows. Also, do not forget about that college education children will have to face later on. Saving some money for emergencies, such as a physical injury of a family member, the loss of primary employment or a natural disaster all have costs.
When purchasing a home, the services of an attorney may be necessary to review the terms of the sales contract so they include all of the safeguards necessary to insure a purchase is not unsafe and also to assist with the closing details. Good luck, and have a healthy and happy life.