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    Post: 4 Rookie Mistakes to Avoid When Buying a Home

    Posted by Monte Mohr on 11/23/12

    For many of us, our home is the single largest asset we
    will ever purchase. Yet people routinely spend less time
    researching a home purchase than they do when deciding
    which car to buy. But you must remember that a house is
    more than your home, in all likelihood it’s your greatest
    long-term investment. There are plenty of instances
    throughout the buying process when you can make mistakes;
    mistakes that mean the difference between financial
    stability and a life of debt. Below are four places where
    you can avoid a critical misstep in the home buying

    Not Understanding How Much You Can Afford Most of us will
    need to borrow money to buy a house and that means we’ll
    make monthly mortgage payments. A lot of people assume they
    know how much they can afford, but you really need to get
    preapproved for a loan to have a strong sense. Preapprovals
    are great, but if we learned anything from the subprime
    mortgage crisis, we learned that just because a bank says
    you can afford it, it doesn’t mean you’re comfortable
    paying that amount. For this reason it is critical that you
    thoroughly review your budget to identify your comfort zone
    with monthly payments for the next 15 or 30 years. If you
    don’t figure out how much house you can comfortably
    afford, you could easily find yourself attached to an
    impossible dream.

    Not Budgeting For Additional Expenses In addition to
    monthly mortgage payments homeowners are responsible for
    much more. Part of owning a home is paying annual property
    taxes, annual homeowner’s insurance premiums, and the
    cost of any repairs or upgrades the house needs. When
    compared to your days as a renter, you will also notice an
    increase in utility costs. And depending on where you live
    there may be monthly (or yearly) maintenance costs paid to
    a homeowner’s association.

    Not Thinking About Resale Value Always buy with selling in
    mind. When you’re looking to buy a home, chances are that
    the selling process is the farthest thing from your mind.
    That’s because most times when we buy a house our
    intention is to stay there. But don’t forget that this
    house is a long-term investment and life is full of
    unexpected things: illness, loss of a job or a job
    transfer, and divorce to name a few. All of these things
    can create financial hardships which affect your ability to
    pay your mortgage payments. So as you’re looking to buy a
    home, remember to think about the ease in which you can
    resell it in the future.

    Skipping a Home Inspection Have you ever watched the movie
    “The Money Pit”? Nobody wants to get stuck with paying
    for a lot of unexpected repairs. The best thing to do is
    keep your emotions out of the deal until you’ve hired a
    professional inspector to verify the house's physical
    condition. Sellers won’t tell you about poorly insulated
    walls, but an inspector will.

    The home buying process isn't without its share of possible
    pitfalls. But if you can spot the danger zones, you can
    avoid making costly mistakes that will jeopardize your
    financial future.

    Franklin Tennessees' Top Realtor

    Posts on this thread, including this one
  • 4 Rookie Mistakes to Avoid When Buying a Home, 11/23/12, by Monte Mohr.

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