Buying a new home is no small matter. It is a significant financial commitment that involves many moving parts. With a stabilizing real estate market, it can be tempting to jump right in and invest. However, there are some pitfalls one can fall into. Avoid these top mistakes that are common to buyers from Sandwich IL real estate agent Lauralee McElroy.
Going Over Budget
When looking for a home, you’ll find various options that can drive up the price from what you originallly intended to spend. What’s another $10,000 for that breakfast nook, really? However, these can add up fast. Try not to get carried away. Also, don’t assume that your monthly income will always be the same. If your mortgage payment is set at the maximum it possible can be, then you run a risk. It is safe to keep your regular monthly bills at 50% of your monthly income, if possible. One recommendattion as a real estate agent in Sandwich IL is to get pre-approved for a loan. This will give you an estimate of your limit as far as a mortgage. Again, to be safe, work towards a morgtgage that is 20% less than the amount you were approved for.
When you rented your last place, you had to pay that rent check and maybe some utilities. One mistake observed as a Sandwich IL Realtor is that some buyers assume that when paying for the house, its pretty much the same, only with a mortgage payment instead of rent. However, this is far from the case. You can add the following to your monthly expenses:
One way to get accurate estimates for these costs is to inquire with the current homeowners of the house you are considering. Keep in mind that their lifestyle may differ from yours. You might pay more in utilities if they shut off the lights at 7:00pm, while you are staying up until midnight, for example. Other costs to remember are closing costs. Ask your real estate agent about accurate estimates for these. For help in buying your next home, contact Sandwich IL real estate agent Lauralee McElroy.
As the old adage says, “Don’t judge a book by its cover.” Just because a home looks great from the outside, or its superior staging, doesn’t mean its in god condition. An appraisal and an inspection are related, but not the same. The inspector will be working in your interest to find problem area. Water damage, foundation cracks, and the status of the roof are a few they’ll inspect. By hiring an insector you will not only be saving yourself from having to fix problems down the road, but you might be able to get a lower price for the house as well. For more information on buying a home, or for help in buying your next home, contact Sandwich IL Realtor Lauralee McElroy today!