There are some things in life that don’t require much thought or preparation to purchase: toilet paper, batteries or a new light bulb. You buy these things out of necessity, plus they are cheap and readily available.
On the other hand, a large purchase, like a new home, requires research and preparation. Here are some common mistakes to avoid throughout your next home purchase.
Forgetting about all the costs- This rings especially true for first-time home buyers. When purchasing, there’s your down payment, principal with interest, property taxes, homeowners insurance, utilities, appraisal fee, credit report fees, escrow fee up front and then any maintenance costs once the home is yours. Plan wisely.
Buying a home you can’t afford- This one seems like a no brainer, right? Then why do so many people do it? Take time to crunch the numbers, and don’t forget those additional costs we talked about!
Making a down payment that is less than 20 percent- Do this, and you’re looking at the additional cost of private mortgage insurance.
Skipping an inspection- Even though it seems like just another thing to pay for, you’ll be thankful if the inspector points out some serious issues you couldn’t see, saving you from a investing in a money pit.
Buying if you aren’t staying put- renting is great for those that move around a lot; purchasing a home is not. If you’re buying a home, make sure you’re ready to establish some roots.
As we said, buying a home is a big deal, as are the consequences that go along with not preparing. The lending professionals at Sunset Bank and Savings can help you understand all the prep work you need to get done to avoid kicking yourself a year or two down the road. Give them a call today to get started.