7 Home-Buying Traps
With first-time home-buyers facing an unfamiliar road when purchasing there first home, here is a great guide to guiding them through the potholes. A person is inevitably going to have to go through some challenges but you can keep your regrets to a minimum by avoiding the following seven traps.
1. Blindly using your agent's inspector -
Don't always take your agents advise and use there referred home inspector. He or she might be a well qualified inspector but they might have too close of a relationship to give an honest opinion. Make sure that the inspector belongs to the American Society of Home Inspectors, which requires its members to complete at least 250 inspections.
2. Taking advice about what you can afford -
All parties including your agent, broker and lender don't know what you can truly afford. Only you know what you can truly afford to spend on your mortgage. A good rule of thumb is to limit your housing cost including mortgage, property taxes and homeowners insurance to 25% of your gross income. This will allow you enough money left over to cover other goals, like retirement savings.
3. Getting a 'temporary' loan -
In markets where appreciations have escalated out of control, to where first-time home-buyers can't afford a conventional fixed rate loan in most cases even when there credit scores are good. Many times in these cases home buyers are talked into more risky loan types that cause them to have lower payments but cause low appreciation rates along with higher percentages of foreclosures.
4. Opening or closing credit accounts -
By either opening or closing any credit accounts borrowers endanger there overall credit score which is the driving force in both the interest rate charged for the loan and the amount that a bank will finance. It is smart not to do anything with regards to running your credit while in the home buying process.
5. Failing to investigate the neighborhood -
It is smart for a buyer to look at the property and the neighborhood at various times of the day and the week. This will give the buyer a better idea of changes in the traffic during different times of the day and also give the buyer a better sense of how kids affect the neighborhood while off of school on the weekends.
6. Buying when you're not ready -
Buying a home is a great way for the average person to build wealth over the long run, but it's not for everyone in all circumstances. If your finances are uncertain or your job prospects are up in the air, you might want to wait. Renting is also a better option if you're planning to move in a year or two.
7. Not buying when you are ready -
With all the last 6 tips suggesting you do your homework before buying, you shouldn't let fear or uncertainty keep you on the sidelines if you're otherwise ready to buy a home.
Let the Nolting Real Estate team put you on our most prestigious list of clients and give you the monthly items of value that all our top clients receive.
Nolting Real Estate
14272 Manchester Road
Manchester, Mo 63011
NoltingRealEstate.com and/or
(636) 391-9997
1. Blindly using your agent's inspector -
Don't always take your agents advise and use there referred home inspector. He or she might be a well qualified inspector but they might have too close of a relationship to give an honest opinion. Make sure that the inspector belongs to the American Society of Home Inspectors, which requires its members to complete at least 250 inspections.
2. Taking advice about what you can afford -
All parties including your agent, broker and lender don't know what you can truly afford. Only you know what you can truly afford to spend on your mortgage. A good rule of thumb is to limit your housing cost including mortgage, property taxes and homeowners insurance to 25% of your gross income. This will allow you enough money left over to cover other goals, like retirement savings.
3. Getting a 'temporary' loan -
In markets where appreciations have escalated out of control, to where first-time home-buyers can't afford a conventional fixed rate loan in most cases even when there credit scores are good. Many times in these cases home buyers are talked into more risky loan types that cause them to have lower payments but cause low appreciation rates along with higher percentages of foreclosures.
4. Opening or closing credit accounts -
By either opening or closing any credit accounts borrowers endanger there overall credit score which is the driving force in both the interest rate charged for the loan and the amount that a bank will finance. It is smart not to do anything with regards to running your credit while in the home buying process.
5. Failing to investigate the neighborhood -
It is smart for a buyer to look at the property and the neighborhood at various times of the day and the week. This will give the buyer a better idea of changes in the traffic during different times of the day and also give the buyer a better sense of how kids affect the neighborhood while off of school on the weekends.
6. Buying when you're not ready -
Buying a home is a great way for the average person to build wealth over the long run, but it's not for everyone in all circumstances. If your finances are uncertain or your job prospects are up in the air, you might want to wait. Renting is also a better option if you're planning to move in a year or two.
7. Not buying when you are ready -
With all the last 6 tips suggesting you do your homework before buying, you shouldn't let fear or uncertainty keep you on the sidelines if you're otherwise ready to buy a home.
Let the Nolting Real Estate team put you on our most prestigious list of clients and give you the monthly items of value that all our top clients receive.
Nolting Real Estate
14272 Manchester Road
Manchester, Mo 63011
NoltingRealEstate.com and/or
(636) 391-9997
posted by Russell T. Nolting at
3:27 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home