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Are you looking to purchase a home? Many people get so caught up in finding their "dream home" that they begin to focus on the tiny details, rather than look at the big picture. Though you shouldn't have to settle for a home you don't like, realizing that you may have to make some compromises in order to find a house you love and in your price range is essential. ere is a list of some of the biggest mistakes homebuyers make:
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NOT KNOWING HOW MUCH HOME YOU CAN AFFORD:
What the bank says you can afford and what you are comfortable paying can be wo completely different things. Now is the time to set a budget and determine your monthly expenses. Subtract the amount of your expenses from your total take-home pay. The leftover amount is what you could spend on a mortgage payment each month, however you might not want to spend all that's left over. Decide how much of the remaining money you wish to spend and how much you want to have for a cushion. This will help you figure out how much house you can afford.
You will also need to get pre-qualified for a loan. What you think you can afford and what the bank is willing to loan you might also be different depending on your credit, etc.
It is important to get pre-qualified for a loan and to determine the amount you are comfortable spending before you even start looking at houses. If you begin by looking at houses that are out of your price range you are just setting yourself up for dissapointment down the road.
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LACKING VISION:
Did you find a home that you like but it has outdated decor? If the home meets your other requirements in terms of space and location, but has less than desireable popcorn ceilings or wood paneling on the walls you might want to reconsider. Don't look at the home for what it is, but for what it could be with a little sweat equity! These types of homes are great, especially if you are on a budget. Looking for a home that you can add value to will only help you climb the property ladder later.
COMPROMISING ON WHAT YOU REALLY NEED:
While it's okay to compromise on some things like a swimming pool or a corner lot, you might want to stick to your guns on things that you know you NEED in a house.
If you have kids and need a 3 bedroom house, by all means don't buy a 2 bedroom home because it's in a great location. You will just be crowded and miserable and will want to move in no time!
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FORGETTING TO CONSIDER ADDITIONAL EXPENSES:
Homeownership comes with additional expenses on top of the monthly payment. You will now have to pay property taxes, homeowner's insurance, homeowner's association fees, and the list goes on. Also you need to consider if the home will need any repairs or improvements once you move in.
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NOT GETTING AN INSPECTION:
Before you make things final you need to know what shape the home you wish to buy is in. Not much is worse than getting stuck in a home that is a money pit in need of constant repairs. Getting an inspection by a reputable home inspector will help you avoid making any serious mistakes.
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BEING TOO PICKY:
Many times potential homebuyers can't find anything they like because they are being too picky. It is good to have a list of items that you want in a home, but don't be so inflexible that it keeps you from finding anything. Many times we get this picture of perfection in our heads and then become disheartened when that home doesn't exist or those things on the wish list aren't available in our price range. If it is very important to you to purchase a house, then you should focus on the positive aspects of the homes that you are looking at and to pick the one that is the closest to meeting your expectations. Remember, you don't have to live there for the rest of your life.
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NOT HIRING YOUR OWN REAL ESTATE AGENT:
It is in your best interest to have a real estate agent working on your behalf. Though real estate agents are ethically supposed to act with the best interest of both parties in mind, you can see how it might potentially not be the best thing for you to just use the agent that has the property listed.
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