Buying a Home - Common Mistakes

Although the process of home buying can be thrilling,problems they see in the house, but there is no
buying a home is a huge expense. For many people, itguarantee that no other problems exist.
may be the biggest expense to date in their lives. You- Buying a home may be the largest investment you
have to temper your excitement so that you don'tever make, so the couple hundred dollars you spend
"catch the fever" or home buying and let youron making the sure the foundation won't collapse is
emotions get the best of you. There are some majorwell worth it.
mistakes that you can avoid if you keep a level head- In the Rolla/St. James area, a home inspection in
when you buy your home. Follow these steps to makeRolla or St. James will run between $200 and $250.
sure your home buying experience is productive andAdd $50 to $100 for a termite inspection, and for $250
enjoyable:to $350, you are buying a great deal of peace of mind
1. Always set a budgetabout your future home.
All but the very wealthiest people in the world have4. Remember resale value. While most people
some financial considerations when they prepare tosearching for a home are not thinking ahead to selling
buy a home. Consider completing the following tasksa few years down the road, resale value is an
before you set your purchase price budget.important consideration.
- Purchasing a home comes with additional expenses,- Most people go house hunting thinking, "We are going
both in the purchasing process and after you own theto live in this house forever". In reality, most people stay
home.in any given home no longer than 7 years, and many
- Securing a loan is an important part of setting yourpeople's stay is even shorter.
budget. Make sure you know ALL costs and fees- The closer you get to retirement, the more likely you
associated with the loan of your choiceare to stay settled in a home.
- Consulting a Realtor and other homeowners can give- Knowing the average amount of time people live in a
you great information about the costs that come withhome, make sure you stay away from overly unique
home ownershiphomes that might be difficult to sell quickly when you
- Borrowing what a lender will allow is NOT the sameneed to.
as deciding what you can afford on a monthly basis.5. Learn about the buying process. The best way to
Don't overwhelm your budget to buy your dreamavoid any problem with buying a home is to make sure
home the first time out.that you have all the facts.
2. Speak to a lender before you begin- With the prevalence of the internet, you have all of
Unfortunately, the loan process is much morethe information you could possibly want at the touch of
complicated than it used to, with a number of factorsa button.
involved in your ability to qualify.- If you are moving to a new area, or another home in
- Before you meet with a Realtor, make sure that youthe same place, spend some time online learning what
see a lender.kinds of homes are available in the area.
- Consider that what the bank will loan you (your- If you already live in the area, also spend some time
qualification range) is not necessarily the same asdriving through a few neighborhoods and familiarize
what you can afford.yourself with available housing. You can find
- Conversely, if you think that you can afford ainformation on anything you desire, it just takes a little
$150,000 home but the lender is only willing to lend youtime.
$125,000, if you start out looking at more expensive- Remember that "knowledge is power." It is much
homes and have to scale back, there will be a majoreasier to avoid mistakes when buying a home if you
difference in what is included in the more expensiveare well prepared.
house. If this happens, you may never be happy withAvoiding costly home buying mistakes can be very
the less expensive home.easy. Committing to buying a home can be very
3. Complete a home inspection.intimidating, but as long as you have all of the facts
When buying a home, completing an inspection is notand avoid getting emotionally swept away, you can
an option. However, there are still some aspects tofind the home you desire. Keep these 5 steps in mind
consider when ordering the inspection.to help ease the home buying process.
- Inspectors give you their best judgment of the