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Buying a home is a huge decision that can affect how you live the rest of your life. Although most people know better than to take this lightly, many people fall for some common pitfalls that they could avoid through planning. This house is your future home, so take the time you need to make sure it's the perfect fit for you.
Going Beyond Your Budget
This mistake is one of the most common ones. A lot of people like to follow the rule of making sure your house payment is no more than thirty-three percent of your monthly income- but it should get calculated on a person-to-person basis. What bills do you pay every month? Calculate everything down to groceries and fun that you have.
How much is left?
Although an ideal budget is fun to have, being house poor isn’t fun. What's the good in owning your own home if you can't afford to furnish it?
Craft a budget that you know you'll be able to stick to, and then actually follow through with it. There are endless beautiful houses out there, so find one that you can afford.
Falling In Love And Being Blind to Problems
This mistake affects first-time house buyers more than anyone else. Falling in love with the first house you see, or any house in general, before knowing everything about it is a mistake. Try to keep your eyes on the facts. If your heart is going out to a house while looking at El Paso real estate, now's the smart time to pay closer attention to any possible defects.
Use critical thinking, a shifting foundation, or extensive remodeling, can make a house terrible even if it's beautiful. Think about your future with the house, and decide if you're willing to put the time and money into it.
Picking The Wrong Mortgage
Regardless of the length of your mortgage, you need to consider your monthly payments heavily. If there's wiggle room, and you think you can finish it faster- save the money off of interest by paying it off. Don't bite off more of a house payment than you can chew, though, it's better to have a lower monthly-cost mortgage that lasts longer, and you can pay off every month, than a short high price mortgage that will leave you struggling.
Buying When You’re In Debt Already
Debt can eat away at a person. Taking on a mortgage is agreeing to an obligation of hundreds of thousands of dollars- it's better to have no other debts before you agree to this. Not only do debt payments take money off your monthly income, but they can also ruin your credit. Take the time you need to pay off your debts, or get them consolidated, and then revisit buying a home. Although the house you were eyeing might not be on the market anymore, you may now be able to afford something better.
Your home is a long-term investment you should take pride in- don't buy a house without serious consideration for these aspects of your life.
