Posted on: 26 July 2017
Buying a home is both an exciting and a tedious process. You need to be on your guard all the time, arm yourself with facts and figures, and do your best to act rationally. It can be very confusing, but you aren't likely to go wrong if you heed the following advice:
Don't Ignore the Big Picture
It's possible, though dangerous, to zero in on single features at the expense of the big picture. This is especially true when you view a house that has one of your must-have features. For example, if you have always wanted a house with a long driveway or mature trees, and you have found one, it's easy to ignore other features of the house. In such a case, it's easy to buy the property (with the long driveway or mature trees) even if it has signs of water damage (stains on the walls, anyone?) or pest infestation, which can lead to serious loss of money.
Don't Ignore Your Family and Friends
Everybody wants to live in a nice house, but don't think for a moment that living in a nice house is the secret to your happiness. The relationship you have with your family members, friends, and colleagues triumphs all that. Therefore, it's dangerous to move far from your treasured friends and loved ones in search of a big house, a house with enormous walk in closets or a house with the latest kitchen appliances. You are better off living where you can maintain your social contacts.
Don't Ignore the Long-Term Expenses
The expenses of buying a house go far beyond the initial expenditures such as the purchase price, the closing costs, and the monthly mortgage payments. You need to think of the long-term expenses if you really want to be able to afford your house. Such expenses include upkeep or maintenance costs, moving costs, insurance costs, and energy costs, among others. You know you can afford your home if you can pay for those "hidden" costs and still live comfortably.
Don't Ignore the Possibility of a Rate Increase
Lastly, if you are buying your home on mortgage (as many people do), it's advisable to think of the possibility of a rate increase. This is especially necessary if you are working on a strict budget (for the home purchase and maintenance) and has based your calculations on your current interest rate. Either factor in the possibility of a rate increase or get a mortgage with a fixed rate.Share