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.