Selecting the house that will be your home is a big decision. It’s up there with choosing a college, naming your child, or contemplating marriage, for sure. Why, then, are buyers so unfortunately prone to committing major blunders in the name of signing up for a poorly-thought-out six-figure obligation? The following is a brief summary of some big mistakes buyers make when picking out a home. Don’t let these potential pitfalls get the best of you!
Taking it to the limit
Just because you can get approved for a $xxx,xxx mortgage, that doesn’t mean you should take advantage of the bank’s willingness to finance that amount. Too often buyers get carried away with wanting the nicest home they can “afford,” and inadvertently put themselves in the danger zone. What’s an extra twenty- or thirty thousand dollars when you’re talking about our dream home right? Wrong! If your family should suffer a job loss or other financial catastrophe, that few couple hundred dollars a month could be the straw that breaks the camel’s back. Once upon a time, optimistic young buyers expected to “grow” into their mortgage payment as incomes inevitably increased over time. Nowadays, we know that circumstances change. Stretching your budget to the limit is just asking for trouble. Take that “extra” money you’d spend on a mortgage you can barely afford and use it to bulk up your maintenance and emergency fund.
Skipping the inspection
The prospect of shelling out a few hundred dollars for a home inspection right before moving is not one that makes anyone jump for joy. We’ve all heard the excuses a dozen times: You’ve got an uncle/cousin/stepfather/friend who happens to be handy; they can walk through and give you an “all clear.” You really don’t need to hire a pro. Stop right there! You’ll be thrilled as can be if that expensive inspector finds a major problem that could potentially cost you thousands, and even the most hands-on DIY’ers need to know what they are getting into. Don’t be “penny wise and pound foolish.”
Letting your heart get in the way
A big part of homeseller strategy is aimed at making would-be buyers fall in love with a house. As a buyer, however, going head over heels for a home is the worst thing you can do. Smart buying demands a cool head and an objective eye, and if you are blinded by outward charm (adorable front gardens! crown molding! a huge walk-in closet!), you could potentially be blinded to some big downsides. This is especially true when it comes to older homes, in which to-die-for doorways and shining, original wood trim can distract from any number of nightmarish maintenance issues.
Failing to look at the big picture
A house may have dream-home potential from your cozy vantage point ensconced in the living room, but no home is an island. (Unless you are insanely wealthy and own a private jet, anyway!) Neighborhoods count. If you have young children, don’t make the mistake of neglecting to assess the school district. If you will be commuting to work, test-drive your prospective route several times under different conditions. A lousy zoned school assignment or a hellish commute can quickly tarnish the shine on homeownership, and they aren’t easy problems to fix. Also make sure you consider other neighborhood factors, such as a possible HOA, proximity to a noisy highway or park, convenience of banking and shopping, and the presence of potential personal annoyances in your vicinity: small children, noisy teens, barking dogs, or neighbors prone to big parties and ‘round-the-clock social lives.
