Avoid The Financial Pitfalls Of Buying A Home

| February 16, 2016 | 0 Comments



In a perfect world, buying a home would be easy. Unfortunately, we’re not living in a perfect world. Buying a new house can be nothing short of a personal and a financial nightmare. But it doesn’t have to be. There are ways to make buying a new home a lot easier. To do this, you just need to avoid some of the common pitfalls people fall into on the property market, and we’re here to help. We’re going to discuss some of the biggest problems with buying a home and how to handle them. But first, let’s get the answer to a particularly important question.

Is It The Right Time For The Market?

If you’re buying a new home, this is the first pitfall or trap that you want to avoid. A number of buyers make the mistake of entering the property market at the wrong time. There are plenty of reasons why it might not be the right time to buy a new house. The market might have just fluctuated. This means that house prices are a lot higher than they should be. That’s great for the sellers but bad news for someone looking to buy a home. The good news is that the market always bounces back so just need to be patient. It’s important to realise that there might still be houses on sale in a bad market at a great price. But you have to think about why the price is so low. Is there a reason, other than personal, that a seller is looking to make a fast sale?

You should also be aware of the issue of buying in different seasons. You might be looking to buy a home in the winter. This is commonly considered one of the worst times to buy a home. You won’t find many houses on sale, and this means the ones on the market will be at a higher price. Sellers won’t settle for lower offers. You also need to realise that homeowners will use seasonal weather to hide negative aspects of their property. For instance, there might be a gorgeous conservatory that’s going to be lovely in the summer. In the winter months, thanks to no heating in the room, it will be ice cold.

The Wrong Time For You

How do you know if it’s the right time for you to buy a house? The first issue you’ll need to consider is your personal finances. Many people believe you can buy a home without any money saved. Essentially, you can buy a home using a complete homeowner loan. This isn’t the case at all. You’ll need at least five percent of the asking price saved to buy a property. If you want our advice, you should aim for twenty to twenty-five percent. This will allow you access to better mortgage deals, and we will look at this possibility further down. It’s also going to make the repayments on your home a lot easier.

When you buy a home, you should also be thinking about your income. You need to be confident that you are on a stable income. Otherwise, you could lose your job and still be tied down to paying repayments on a property that you can no longer afford. It’s not advisable to buy a home if you are currently freelancing, for example.

If you’re wondering how to get started saving up for a home, you should set a budget. You should then save a large amount each month to put towards the future purchase. If you can save a large amount, you will be able to open a home saver account. These have high-interest rates, and the government will help fund it. They are used to encourage people to buy property.

Choosing The Wrong Property

Another pitfall home buyers make is choosing the wrong property or buying for a price more than it’s worth. To avoid these common mistakes, you need to get a good grasp of the market. You can investigate the market and different home prices by looking at a real estate website. Ron Howard and Associates have a wide range of properties online available for you to peruse. By doing this, you’ll be able to get a feel for prices that you might be expected to buy. You can also make sure that you are not gouged on the price of a particular property.

When you find a property that you like, you’ll also need to work to get the price down to the floor. This is the lowest price that a homeowner will agree to sell at, and it can be difficult to reach. You need to start by not showing too much interest in the property you’re looking at. Think of it like a poker game. You should under no circumstances give away your hand. You also need to be polite and friendly. Homeowners have been known to choose a buyer partially on the fact that they liked them as a person. These are some of the issues you’ll need to consider to get the floor price. Remember, it will take some bargaining but shaving a few thousand off will be worth it.

Arranging The Mortgage

The next issue to consider is arranging the mortgage. For many homeowners, this is the first mistake that they’ll make. They will choose a company that is not reputable, but that is, seemingly offering a great deal. To avoid this, you must always read the fine print and know exactly what deal you’re getting. You should hire legal representation when buying a home partially for this purpose. They will be able to advise you on what deal you should accept.

As well as this, you might want to consider speaking to a mortgage broker. A mortgage broker can help you find the best loan deal on the market. They will take into account rate of repayments and interest to find the best deal for you.

Avoid these pitfalls and you won’t fall into the nasty traps other home buyers have before you.


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Category: Home Loan

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