There are things you’ve bought that you’ve regretted buying: latest phone models, high-waisted jeans, lipsticks, and make-up or that expensive bag that cost three months worth of your salary. Your only consolation is that the money you used to but these items are not a life changer. But what if you buy a house and later on you realized that you can’t afford it? Now, this needs a serious talk.
When you buy a house, avoid the following costly mistakes:
- Letting the emotions get in the way
Buying a house is probably the biggest investment that you are going to make in your entire life. Don’t get too excited by picking the first one that makes your eyes roll. “Collect and Select”, that’s the right strategy. Don’t buy a house just because the roof is pink which is your favorite color.
- Not hiring a real estate agent
No one is questioning your intelligence. You might be a well-respected doctor but the truth is you are a newbie in real estates and you need a mentor. Hiring the right agent can help you in so many ways. An agent can help you find a house at your desired location and within your budget; can help you get approved for a mortgage; negotiate for the right price and prepare the closing documents.
- Going directly to the listing agent
Listing agent directly works for the seller and therefore protects the seller’s interest. Going directly to him might mean that you will be offered a price higher than the true value of the Hillsborough luxury real estate home. Because you are unaware how to qualify the value of the property, you might be tempted to take his offer, a decision that you might regret for a lifetime.
- Assuming that as a homeowner, you have an absolute freedom
One of the benefits of being a homeowner is you have the freedom to decide what you will do with your own house. However, keep in mind that you still need to follow some rules about homeownership. The condo management or the homeowner’s association might be implementing restrictions when it comes to owning a pet, home business operations, and timing for parties, among others.
- Not having enough savings
You can’t run a car without a gas, right? Or you have little reserve, but while on travel the tank becomes empty, do you have money to buy more gas? Think of this logic. You cannot buy a house without enough savings to pay for the down payment. Make sure that your monthly income is more than enough to pay the mortgage loan plus your dues and other expenses.