iowahomeloans

Avoid These 3 Common Pitfalls When Buying a Home

Posted on: July 4, 2014

Buying a home is a great experience when you approach it with the right attitude – but it can become a curse if you don’t think about your long-term needs. If you’re preparing to buy a home, look out for these common pitfalls when you’re shopping for a home.

Don’t Neglect Future Needs
Families today are staying in their homes longer than they used to. You need to think about your future needs, and buy the home that’s appropriate for your long-term plan. Don’t buy a home that’s too small for your growing family – or don’t buy a huge house if your kids are only a couple of years away from moving out. Think about where your family is going, and buy your home based on those needs.

Don’t View the Home Primarily as an Investment

Your home can be an investment – but that shouldn’t be the driving factor behind buying a home. Think of your house, first and foremost, as the place you’re going to live. You want a suitable, comfortable living arrangement that won’t drive you crazy a year or two down the road. When you buy a home primarily as a place to live, its investment value is secondary – which means you can better weather potential swings in value.

Don’t Buy More Home than You can Afford

Many of the people who buy a home simply don’t understand all of the costs of living in the home. At the most basic level, don’t forget to factor in mortgage principal, taxes and interest. It should be no more than one-third of your take-home pay – and one-quarter is even better. Beyond that, though, think about energy costs, the cost to furnish a home and the cost for upkeep. Don’t be the family that runs up the credit cards to pay for housing expenses, and then doesn’t have the money to fix the car when it breaks down.

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