Finding your dream home can be quite a daunting task.
But what can turn that dream into a nightmare is if your home has to be repo-ed (re-possessed)…
only because you can’t make the payments on the place you call your little corner of heaven on earth.
True, this is a scary thought but one that doesn’t necessarily have to turn into a reality if you keep in mind these 5 tips…
1. Acknowledge what you can afford
This is something many people don’t want to do. Yes, that awesome home with all the trappings is your ultimate dream home BUT if it is several hundred thousands over your budget, don’t even give it a second look!
We know a family who bought a mansion to show off their riches but once they moved in, realized they had bitten off more than they could chew.
The family only switches on lights in one room in the house, to save whatever little they can on electricity bills, with the hope that the savings can go towards mortgage payments!
2. Do your homework
When house-hunting, ensure you do all your homework. That’s where a reliable real estate agent comes handy…and ofcourse the internet!
Looking through a list of best places to raise your kids in 2012 is awesome but that’s not all you need to look at.
Check on the real estate taxes for the area you’re interested in, electricity providers, community fees etc.
The little things do add up if you aren’t careful!
3. Find the right bank.
Assuming you don’t have all that spare cash lying around and need to take a loan to buy your home, look for a bank that gives you
- the best interest rate payments
- the ability to clear the loan even before the stipulated loan period, without a penalty
- customer benefits for banking with them
5. Don’t Splurge…be wise
Moving into that new home is always exciting and the enthusiasm to furnish the place is always high. Sure, you want a state of the art entertainment system and a living room set that looks like something out of the Lifestyle of the Rich & Famous shows…
but you need to spend wisely.
Initially furnish your home with what you need…not what you want.
Then, over time, slowly add to what you have.
This will help keep that budget in tact!
Do you have any tips for a new home-buyer?
**EBMR Disclaimer: This post has been inspired by Genworth Financial and yes, the heart of the post is all me!**