Purchasing a home is an exciting and memorable event that marks a huge step in someone’s life. However, poor decision-making can quickly wipe the smile off a homeowner’s face when they’re bombarded with financial obligations that they struggle to keep up with as well as other costly issues. If you’re looking to buy a new home, here are some common mistakes that you can avoid.
Rigorous Spending Habits
While it’s nice to enjoy the luxuries of a brand new home, remember that you have a set budget that you need to adhere to. Failure to do so will thrust you into a difficult position and may even put you at risk to losing the house – if you can’t keep up with the monthly payments. It’s crucial that you discipline yourself into not overspending.
With all the other costs that go into purchasing a home, what may initially sound affordable to you can quickly turn into a nightmare pretty quickly. Factor in costs such as homeowners insurance, property taxes, closing costs, and other fees that you’re going to be hit with. If you’re going to be living paycheck-to-paycheck, you might be better off waiting until you’ve saved more.
Don’t Forget About the Down Payment
Many people make a low down payment thinking they’ll make it up on their monthly mortgage payments. This also means that the monthly mortgage payment will also be higher in the long run, resulting in more payments throughout the course of their lifetime. Ideally, it’s wise to make a generous down payment so you can pay through the mortgage quicker.
Bio: Kuba Jewgieniew is the head of Realty ONE Group, a real estate firm that has grown to become the largest real estate brokerage in Nevada and the fastest growing real estate company in Arizona and California.