Buying a house can be exciting yet also frightening because one mistake can end up being costly. This video explains common home-buying mistakes, and how to avoid them.
Using Gross Income to Calculate your Pre-Qualification
By using gross income, you haven't yet deducted taxes and benefits, so more than half of your net income can go into paying for your new house. Calculate your net income and see how much can go into house payments.
Do not use your entire savings to purchase a new house. Always keep separate savings for emergencies and other miscellaneous purposes.
Establish a timeline for home buying. Pre-approval can take a couple of weeks, finding a house can take a couple of months, and possibly another month to close on the property. This also depends on your circumstances.
Do not go for the most popular house as the premiums will be high. Use your savings to renovate the less popular option.
Do not buy with the purpose of selling in a few years as the markets can be unpredictable. Make it a long-term investment.
These five vital home-buying pointers will help you get ready for your next house purchase..