Many of the articles that we have written thus far have been about the rent to own financing option. There is much more to purchasing a home than just the financing options available to interested home buyers.
This article is going to take a look at five of the worst possible things you can do during the home buying process. Whether you are interested in using the lease option method or you’re able to buy your home with a traditional purchase, this is a fantastic article to help prepare you for a smooth transition to home-ownership.
Don’t Know Your Budget
So many people these days just simply do not know what their budget is for their home related expenses. Even those who are focused and determined to buy a home often have not calculated how much they can afford. This lack of knowledge can lead to major disappointment when you realize that the home you want is more than you can afford.
In order to avoid this blunder you should work with a qualified mortgage professional. You could also do research on your own to figure out exactly what your budget is. In the meantime, a quick rule of thumb, if the estimated monthly mortgage payment is significantly higher than the rent you are currently paying, chances are you will not qualify for the purchase price.
Ignoring Mortgage Qualifications
Many new home buyers think that they can simply walk into a bank and come out with a mortgage. In reality, securing a mortgage requires a significant investment in time, energy, and possibly your sanity! This is even more true after the economic down-turn experienced since approximately 2008.
Some of the qualifications include a minimum credit score, solid employment history, certain household income levels, and other factors that the individual banks take into account before determining your credit risk. For many this is the most frustrating part because it can feel like banks are giving you the runaround. The rent to own option is a fantastic way to get around this type of problem.
Ignoring The Home Inspection
Sometimes a seller will avoid admitting to issues in the home they are selling. When dealing with sellers, always assume they aren’t being 100% truthful when discussing the structure and health of their house. You simply cannot forgo a home inspection from a qualified home inspector. They can literally save you thousands of dollars by finding hidden issues that you wouldn’t have otherwise found until you moved in.
With the rent to own option, you get the added advantage of spending time in the home and doing your own inspection. You have the opportunity to determine your own valuation of the home as you live in it on a day-to-day basis.
Making Decisions Based On Emotions
Some people get so caught up in the emotional part of buying a home but they make poor financial decisions. Financial decisions must be made in a cool and collected way. You may have the opportunity to purchase the home of your dreams, but if you are not financially qualified, lack the financial backing, or if you aren’t ready for the commitment you will end up harming yourself in the long run.
Be sure to check your emotions and be smart about the big financial decision that you are about to make.
Being Too Picky
Some people are so picky that they may simply never own a home in their lives! Not every home is going to be perfect. As a matter of fact, most homes have something that you think could be improved about them. For example, let’s say you really enjoy the old Victorian or Craftsman style homes and you’ve always wanted to live in an older neighborhood with these established homes.
But, these properties have a lot of work that need to be done to them on a routine basis. They are often expensive to price and expensive to upkeep. Basically, try not to be too particular or picky, otherwise you will never end up getting a house.
Though many of our articles focus on the rent to own option, it is important to focus a little bit on the overall home buying process. As you have seen from this article, there are many things you should try to avoid during your home buying venture. Just remember to enjoy the journey and experience of finding your dream home.