Buying a home, especially as a first time home buyer, while can be an exciting time, can be a scary, stressful and expensive process. That’s why it’s important to be aware of the risks involved. By having an idea of what you may encounter when buying a home, you can take steps to avoid them. If you think you’re ready to buy a house, here are some home buying risks to avoid.
If you are interested in comparing the best mortgage rates through LendingTree click here. It’s completely free.
Check out: 5 Signs You’re Not Ready to Buy a House
If the process of buying a home seems complicated to you, it may make sense to speak with a professional. The SmartAdvisor free matching tool can connect you with up to three financial advisors in your neighborhood.
1. Obtaining the wrong mortgage.
The worst thing you can do when buying a house is to obtain the wrong home loan. A bad mortgage loan can be one with a high interest rate, which means that your monthly payments are higher. You also have to pay more in interest over the term of the loan.
The people who find themselves in this kind of situation are those who fail to shop for multiple mortgage lenders before deciding on one.
Not all mortgage loans are created equal. Mortgage rates and fees may differ from lender to lender. So to avoid this risk, you should plan to compare several mortgage rates. While the mortgage process can be overwhelming at times, you can navigate the process by comparing home loans side by side through LendingTree.
LendingTree: A Better Way to Find A Mortgage
LendingTree.com is making getting a mortgage loan simpler, faster, and more accessible. Compare the best mortgage rates from multiple mortgage lenders all in one place and at the same time. LEARN MORE ON LENDINGTREE.COM >>>
2. You don’t have any job security.
Another of the several home buying risks to avoid is to make sure you have a stable job with a steady paycheck so you can make your payments on time.
Unless you were able to purchase your home with all cash, you will need to make monthly mortgage payments to satisfy your loan requirements.
In addition, you will need to consider additional expenses, like money to replace the roof or to renovate the kitchen and bathroom. Therefore you will need a steady paycheck or stream of income.
So before you jump into homeownership, make sure you have a stable job.
Related: Apply for a Mortgage Loan Today
3. You forget about other costs.
First time home buyers may think that buying a house only involves finding and getting a mortgage loan, coming up with a down payment, making an offer on a house that they like, and preparing for closing.
However, they may not realize that there are other costs that come with buying a house.
In addition to the down payment and mortgage payments, they need to come up with closing costs, inspection costs, moving costs, maintenance costs, taxes, etc… And if you don’t consider and budget for these costs, you may be in hot water.
4. Buying a home full with problems.
You may have found a house you’ve always dreamed about. But it’s never good idea to purchase a home without conducting a building inspection.
A house inspection is crucial, because it can let you know of a lot of problems that you as a first time home buyer would have never thought existed.
It can reveal problems with the structure of the house, the roof, plumbing, electricity, etc.
Click here to compare mortgage rates through LendingTree. It’s completely FREE.
If you ignore house inspection and move in anyway, these issues can end up cost you a lot of money and can also be detrimental to your safety and well-being.
In conclusion, buying a home can be a fun and exciting experience. It can also come with unique challenges. By being aware of these home buying risks, you can take steps to avoid them.
More articles on buying a house:
Not All Mortgage Lenders Are Created Equally
When it comes to getting a mortgage, rates and fees vary. LendingTree allows you to view and compare multiple mortgage rates from multiple mortgage lenders all in one place and at the same time, so you can choose the best rates for your needs. LendingTree makes getting a loan faster, simpler, and better. Get started today >>>