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The 5 Biggest Mistakes
Home
Buyers
Make |
For those in the market for a
home, there are five common mistakes you should avoid that
could create hardships for you in the
future. Make one of these blunders, and
you could face financial ruin – including
losing your home!
The first error
homebuyers make is finding a home before they find
financial backing for it. You always want to know
how much house you can buy before you try to buy a house
you can’t quite afford.
To ensure you’ll
be able to shop within your budget, calculate how much
you can afford in monthly payments for a mortgage – and
then have your lender pre-approve you (to guarantee your
loan instead of just pre-qualifying).
The second mistake
homebuyers make is applying for a loan with a lender
they know nothing about! Would you go to a loan
shark in the back of a seedy club to borrow money?
Of course not.
But many lenders
wind up suffering from deals gone bad because they
didn’t take the time to check out credentials and
reputations of the people they intend to make a
long-term financial commitment to.
Homebuyers also
come up short when it comes to determining how much they
can actually afford. When a lender asks if you can
afford a $1400/month house payment, think hard before
you answer. Will you still have enough left over
each month to enjoy life and have money to save or spend
as you want?
Fourth on the list
of home-buying blunders is the opposite of #3 –
borrowing too little. It has the same exact effect
– the home buyer doesn’t have enough money set aside to
live life to the fullest – even basic needs are often
left unattended to.
And last is not
knowing how to ask the right questions so that you know
exactly what kind of mortgage you’re committing
to. Make sure you get to the bottom line: What’s
the worst case scenario that could happen with my
loan? Then, you’ll be prepared for
anything!
© 2004 - All Rights Reserved. Apex Personal Loans
Store does not assume any responsibility for the
accuracy or completeness of the above article. Please
consult a financial advisor for specific advice
pertaining to your particular situation.
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