Afonso Real Estate

Posted by Afonso Real Estate on 9/20/2017

Buying a house is the last thing that you may want to rush into. Few decisions impact your life as much as choosing a house to raise a family in. Even if you're single, once you buy a house you could have to live at a property for several years. You could be left with that choice shortage even if there's something wrong with the house.

House buying risks

Unlike renting, buying a house can have long lasting financial binds. For instance, if the housing market experiences a sharp downshift or the economy declines significantly, the price that you'd get for your house might leave you owing the bank several thousand dollars.

The possibility that you could lose thousands of dollars on a house even if you were able to sell it is just one of the downsides of house buying that you may prefer not to look at. Bad neighbors and the possibility of moving into a community that is going to decline less than three years after you buy a house in the area are other house buying risks that you might prefer not to think about.

Yet, it is the turning away from the downsides of buying a house that could costs you large sums of money now and in the future. Another way that you can avoid short and long term losses when you buy a house include:

  • Return home and calculate the actual savings that you'd gain if you took a reduced closing costs deal for a higher priced house. Don't enter a financial agreement without looking over the numbers thoroughly on your own.
  • Get pre-approved for a mortgage. Avoid buying a house that takes you outside of your pre-approval range. Set your price and stick to it.
  • Consider leasing appliances before you sign a higher mortgage thinking that you're really saving because the sellers said they would include appliances in the deal.
  • Be able to comfortably pay the price of a house, property taxes, title fees, mortgage insurance, closing costs, homeowners insurance, homeowners association fees, repair costs and inspection fees. When you buy a house, you'll generally pay a lot more than the price of the house.
  • Pay off other debts before you buy a house. Also, avoid taking on new debt.
  • Limit the amount that you spend on a monthly mortgage to less than 15% o your monthly net income.
  • Drop by the neighborhood during the day, evening and on weekends. Visiting the neighborhood several times before you buy a house in the area.
  • Steer clear of emotional traps. Don't buy a house before it feels like you ought to buy a house.
  • Conduct an independent inspection and property value survey on a house you want to buy.
  • Only work with reputable lenders and real estate brokers.

Real estate market knowledge could keep you safe from bad mortgage deals

Just because you've bought one or more houses doesn't mean that an unscrupulous real estate broker wouldn't be able to take advantage of you. Gear yourself up for a great house buying opportunity by learning as much as you can about real estate lingo, mortgage contract terms, how interest rates are calculated and the relationship between personal credit and mortgage rates.

The best you could do is to become an actual real estate broker. At the least, you could take the same licensing exams that brokers need. You'd potentially learn enough to spot a bad house sell or a bad mortgage. To avoid getting scammed and to enter a rewarding mortgage deal, you also could learn just a few tricks of the trade and keep them as tips to use as you house hunt.