Founding Attorney
Buying a home can be an exciting, albeit an overwhelming and expensive, endeavor. In fact, for many, if not most, people, buying a home will be the single largest purchase they will ever make. Because of the sizeable financial investment people make in a home, not to mention the fact that you are looking to build a life in it, it can be critical to conduct due diligence in the buying process and take care at every step. To help protect yourself, take a moment to learn about some of the most common home buying mistakes. Learn about what not to do so you can focus on doing the right thing as you go through your home buying journey.
Common Home Buying Mistakes
One of the single most common home buying mistakes is buying a house when you cannot afford it. Take a good long look at your financial situation. Review your budget and check to see that you can actually afford the mortgage you are looking to take on. An unmanageable mortgage payment can quickly throw your finances off and toss your financial goals out the window.
In looking at your finances, be sure to account for any debt you may already be holding onto. Debt can be a drag on a monthly budget and available financial resources. Minimum payments can take up a significant chunk of a monthly budget and this is not to mention the fact that interest can quickly creep up and make existing debt obligations even bigger. When you are already stretched thin financially, adding a mortgage payment can be the straw that broke the camel’s back.
Speaking of finances and home buying, another big mistake home buyers make is to overlook closing costs and moving expenses. Usually, the goal of home buyers is to save towards a solid down payment. Be mindful of the other costs associated with buying a home. You may also want to account for any increase in maintenance and utility costs that may come with moving into a new home. Realign your budget to see if you can make it work with some of the cost increases that can come with moving into a new home.
Another mistake to avoid is not getting preapproved for a mortgage. It is a competitive real estate market out there. If you have found your dream home and put an offer on it, you may be extremely disappointed to find out that the seller has accepted another offer because the other offer was submitted with a mortgage preapproval letter. A mortgage preapproval letter lets the seller know that you are a serious buyer. It also means that the process is likely to move along faster and smoother. For these reasons, mortgage preapproval can be essential in giving you an additional advantage over other potential homebuyers in the market.
Real Estate Attorneys
For help protecting yourself and your best interests during the home buying process, get in touch with the knowledgeable real estate legal team at Merlino & Gonzalez. Contact us today.