Buying a house is the major step to home ownership. It is an indication of great milestones taken by an individual which translates to stability and financial security. Socially and personally it is a means of fulfillment in life, it is part of crowning your hard work and saving culture which requires a lot of discipline and dedication. While this is a great undertaking there are things which you need to avoid doing so as to mitigate yourself against any setbacks.
- Major purchase
Do not make a major purchase such as buying a car just when you want to buy a house. Your credit status maybe good and actually be able to get you a loan for the car but this lowers your chances of receiving a good mortgage to get the house of your dreams.
Not carrying out research is more of gambling with your money and future. Ensure to carry out adequate research before buying a house. Your research should be detailed covering all that appertains to each particular component to that house affecting you as the owner directly or indirectly. Check out also the property market value by carrying out market analysis to enable you to be in a position of negotiating for a very good price. This will require the investment of time in the bid to save yourself a substantial amount of money. This will also give you an upper hand while negotiating.
- Trusting Agents
These are the people who behave like they on your side, they pretend want the best for you but they are not. They are working for the seller and you are only a buyer. Do not trust them. They will use negotiating tactics, and also influence you to believe and know only what they want you to know. Be sure and prepared to ask the questions which are right and will enable you to learn about all that matters to you.
- Low interest mortgage rates
Avoid buying a home because the interest rates have become low. It is certain that interest rates fluctuate all the time and whilst they fall, they will certainly rise. When they rise, it means that they will destabilize you as a person as you as you will have to pay the monthly payments in accordance with the adjusted increased interests which might lead to you losing your house.
Could there be subsidence problems caused by things like big trees near the property? While visiting at different times of the day, how is the serenity of the streets? Do you think you will be totally fine or you will be totally bothered by such things as traffic.
- Not sticking to your Budget
Buying a house that is not within your price range will certainly derail your finances in the future. It is important for one to allow for future changes in the future circumstances. Spending more than what you can afford will end up leaving you exposed to potential rise in interest rates and shocks financially.
Buying a house is a dream come true for most people and families but it can also turn out to be a total nightmare. Nightmare especially in terms of finances or having to deal with so many repairs while at the same time servicing a mortgage or having drained your savings to purchase the house.