Mistakes People Make When Buying Houses

Popular real estate magazines and house and garden television shows showcase elegant, trendy and  modern plush houses that attract attention. Log onto an online real estate website and in addition to focusing on the design and size of the houses that you see, the price highlighted with the listings might be all that you see.

Knowledge positions you to receive great mortgage deals

Before you know it, you’re doing the math in your head, convincing yourself that you can afford to buy the house. To lower your monthly mortgage, you divide the total cost of the house by 30 years, then you divide the result by 12.

Certainly you can afford the house. But, not so fast. You could be moments away from making one of the common mistakes home buyers make. What’s this mistake?

Telling yourself that you can afford a house because you can afford to pay the amount that’s listed as the purchase price could cost you years of financial ruin. The fact is that in addition to paying the house purchase price, you must generally pay closing costs, mortgage insurance, the mortgage application fee, for a housing inspection and sales taxes.

What else you might not know about buying a house

Other hidden costs associated with buying houses include survey fees, title fees and homeowners’ association fees. You also might have to pay your first month’s property taxes in advance. Add in the costs of buying furniture and new appliances and the house you once though that you could easily afford might become out of reach.

Get hooked on the house’s interior or exterior and you might tell yourself that the house is in good condition. Paying for an independent house inspection, one that’snot controlled by the lender, might seem like a waste of money to you.

This common mistake that home buyers make could cause you to live in a severely damaged house for years. That doesn’t even count the money that this decision could cost you.

Not researching lenders that you’re thinking about getting a mortgage through is another mistake. Just because a company is willing to finance your house doesn’t mean that the company is reliable, honest or solvent.

You don’t want to ink a mortgage contract with a lender who accepts kickbacks. You also don’t want to sign a mortgage with a lender who is on the verge of filing Chapter 11.

Ask the right questions

Common mistakes home buyers make could put you in deep financial debt. These mistakes could also find you buying a house that has so many structural problems that you feel like you’re starring in the movie Money Pit.

Learning about costs, negotiations and paperwork required during the house buying process may be the best way to avoid common mistakes home buyers make. You don’t have to research all of this information. Asking your realtor probing questions gets you access to the information. So too does speaking with colleagues, neighbors, relatives and friends who have already bought one or more houses.

Open house on 7/9/2017 at 31 Saratoga Dr Worcester, MA 01606


Date: 07/09/2017 Time: 12:00 PM to 1:30 PM  
For Directions: feel free to contact me.  
For more information: click here for the full details  

This fantastic Ranch is ready for it’s new owner!! Just move right in and start enjoying all this home has to offer from the cozy den overlooking the private fenced in back yard to the large living/dining room area complete with new Jotul wood stove!! Hardwoods throughout~~Updated windows~~Updated kitchen with granite and recent flooring as well as recent kitchen appliances.Recent updates to bath include counter-top sink, back splash and flooring. The walk out basement has a 200 sq ft finished room but can easily be expanded! over 11,000 sq ft lot!! Great commuting location on the Worcester/ Holden line!! Showings begin at the Open House Sunday 7/9/17 12-1:30pm !!

Single-Family – 31 Saratoga Dr Worcester, MA 01606 is now new to the market!

This fantastic Ranch is ready for it’s new owner!! Just move right in and start enjoying all this home has to offer from the cozy den overlooking the private fenced in back yard to the large living/dining room area complete with new Jotul wood stove!! Hardwoods throughout~~Updated windows~~Updated kitchen with granite and recent flooring as well as recent kitchen appliances.Recent updates to bath include counter-top sink, back splash and flooring. The walk out basement has a 200 sq ft finished room but can easily be expanded! over 11,000 sq ft lot!! Great commuting location on the Worcester/ Holden line!! Showings begin at the Open House Sunday 7/9/17 12-1:30pm !!

This is a Ranch style home and features 6 total rooms, 1 full bath, 1 half bath, 3 bedrooms, 0.26 Acres, and is currently available for $269,900.

For complete details click here.

How to Pay for Your Mortgage Down Payment

One of the challenges that individuals and couples face when buying a house is finding the money to put toward their mortgage down payment. Since you’ll work with a lender to cover the balance of your mortgage, taking on another loan to cover your mortgage down payment may not be what you want to do.

Build your mortgage down payment early

The sooner you decide to buy a house, the sooner you can start cutting back on spending and increasing your savings. This single move keeps you from taking on unnecessary debt. It also teaches you better money management skills.

Expenses that you could trim or cut out altogether to improve your savings include clothes, tickets to live entertainment events like concerts and stage plays and jewelry. Money spent on eating out at sit down restaurants, out-of-town trips and electronics are other expenses that you could cut and invest in your savings.

In addition to cutting back on spending, following are more ways to find more for your mortgage down payment. Use three or more of the steps to make it easier for you to build $10,000 or more in savings.

Open separate bank account – Start a bank account that you use solely to invest in your mortgage down payment. This bank account should not be attached to a debit or credit card. Use the account strictly to deposit money for your down payment into.

Pay off accounts that require you to pay interest – Examples of these accounts are credit cards, computers and furniture accounts that attach interest to your payments. Definitely, pay off high interest accounts as soon as possible. You could make payments 10 or more days before they are due to reduce the amount of interest you pay on the accounts. Similar to how American Express works, try to pay off your total credit card balances within 30 or 31 days. Some credit card companies charge higher rates if you keep balances on a card for two years or longer.

Invest in certificates of deposit (CDs)– If you have an IRA or 401(k), consider working with your financial advisor to purchase CDs. You’ll get a bigger return on CDs if interest rates increase.

Contact state housing agencies – You may be able to get financial assistance from state housing agencies. This help may come in the form of grants or loans. To avoid taking on debt, opt for the grant path.

Sell products and items – Raise money for your mortgage down payment by selling clothes, shoes and household items that you don’t use. Online resellers are just one avenue that you could use to raise money by selling items.

Freelance or take on contract work -The freelance community is growing. All you need is a computer and a skill to start earning money as a contractor. Jobs you could take on as a freelancer include web designer, writer, virtual assistant, life coach or consultant. You could also find money for your mortgage down payment through gigs with taxi and transportation companies.

Despite your current financial situation, you can grow your savings. You can find money to put toward your mortgage down payment. To successfully save your mortgage down payment, you need to focus. You need to track your monthly expenses. If you’re striving to become financially disciplined, you may need to track how much you spend on a weekly basis.