We noted with interest a piece recently posted online at CNBC.com about the three common and potentially costly mistakes first time home buyers should avoid.
Hence, we wanted to make sure you all took the following into account as your home buying process unfolds:
Overestimating what you can afford
It’s important to remember that monthly payments include not just the mortgage, but interest, taxes and insurance – something buyers can often forget when figuring out their budgets. It’s a good idea to get pre-approved for a mortgage loan so you know how much a bank is willing to lend you before you make an offer on a home. As a general guideline, your total monthly payment shouldn’t exceed 28 percent of your gross income.
Letting your emotions get the best of you
Don’t get so attached that you buy with your heart and not your head. This is very important. If you get too emotionally attached, it can set you up to spend more than you can afford. Prioritize what you want in your home. Make a list of the most important qualities. You may not get everything on the list, but narrowing it down to what matters the most can help you during your search process.
Not planning ahead
Once you have narrowed the search and you are ready to make an offer, check with your agent about the demand. Is the home getting multiple offers? Has it sat on the market a long time? Will it require a lot of upgrades? Also, get a thorough inspection.
We at First International Title want to make sure your home buying experience is an enjoyable one. If we can answer any questions, please don’t hesitate to reach out to any of our branch offices located around the state. We’re here to help!
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