There is a rule of thumb that says you should not buy a home that costs you more per month that 20 to 25% of your take home pay. We rarely see anyone following that rule of thumb today.
Too many consumers are buying homes that take a large part of their monthly income. This leaves little room in their finances for emergencies, furniture, vacations, investing, etc. With the past relaxed lending requirements, people were buying way more home than what they could realistically afford. If you go down this road, chances are that you’ll grow to hate this home. You should own a home, the home should not own you.
If you are buying a home in the next 6 months and want to learn more about the process from an Exclusive Buyer Agent. Call HomeBuyer Experts at 330-328-3170 or you can email us.
Emotions can cost a Buyer tons of money! Here in the Northeast Ohio real estate market we sometimes see buyers and sellers getting together either on-purpose or by accident before there is a ratified sales contract. This is VERY dangerous. It can affect the whole negotiation process. If you are the buyer and you get all excited about the property in front of the seller, it is equivalent to playing poker with your cards on the table. “You’re never going to win!”. So keep your emotions and your tongue in check. If you know you are the kind of person that just can’t do it, then talk to your Realtor and ask them to make sure they only show you homes when the seller is not there. Trust us on this one, the Realtor will be happy do so because it will make the negotiation process go MUCH smoother. Home purchases are a tricky thing. On one hand they are a HUGE emotional experience filled with all kinds of highs and lows. On the other hand, it can be one of the biggest business decisions of your life. Business filled with emotional exuberance can be costly by showing your hand and causing you to be on the weaker side of the negotiation table. Bottom line…”Don’t open your mouth and insert your foot!”
If you are buying a home in the next 6 months and want to learn more about the process from an Exclusive Buyer Agent. Call HomeBuyer Experts at 330-328-3170 or you can email us.
Would you buy a car without getting a warranty?
I think not! Even if you go to “buy a used car you are going to want at least a short-term warranty to make sure that by the time you get home you don’t have to call a tow-truck! So why should a house be any different. Our advice is, GET A WARRANTY! It’s not going to cover everything but it will sure make that first year of home ownership a lot easier to deal with and you can extend it for another year if you find it useful. Where would you rather spend your hard earned money, on a new plasma TV or fixing the water heater? I may be a bit biased but I’ve found warranties have the potential to save money in the long run. Many times your Exclusive Buyers Agent can get the seller to buy it for you.
If you are buying a home in the next 6 months and want to learn more about the process from an Exclusive Buyer Agent. Call HomeBuyer Experts at 330-328-3170 or you can email us.
3. Not doing a proper financial plan.
We are seeing record foreclosures today. While there are some which were due to product mistakes, most were a result of improper planning! Setting up reasonable realistic budgets with proper forecasting can alleviate this problem. This kind of work will help you match your cash flow to the proper cost home and correct mortgage product. If possible, do this work with a professional financial planner.
If you are buying a home in the next 6 months and want to learn more about the process from an Exclusive Buyer Agent. Call HomeBuyer Experts at 330-328-3170 or you can email us.
Choosing the wrong loan.
In the past few years the lending world has seen more changes than you can count! There are lots of programs and terms most of us have never seen before like; interest only, negative amortization, hard or soft prepays, option arms, 40 year terms, balloon payments, LIBOR, monthly adjustable, reverse mortgages, sub-prime, A-paper…We could go on all day, but that’s not the point. What we want to stress is that things change everyday in “Lender World” and lenders themselves have a hard time keeping on top of everything that is available especially when you put different guidelines into the mix. So if you are a buyer PLEASE EDUCATE YOURSELF! Ask lots of questions! Understand what you are signing before you go to escrow, the escrow company will not know the details any better than you will. If you get a loan that you do not understand and your payment changes or you have a balloon payment that you can’t make, you can and very likely will lose your home. This will cost you thousands of dollars by effecting your credit, insurance rates, job opportunities, interest rates on your current credit cards, tax responsibilities and over-all quality of life. Not to mention how it will impact your mental and emotional state of being. We don’t want to see this happen to anyone, so please choose the right loan.
If you are buying a home in the next 6 months and want to learn more about the process from an Exclusive Buyer Agent. Call HomeBuyer Experts at 330-328-3170 or you can email us.
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Exclusive Buyer Agents serving Summit, Stark, Medina, Wayne, and Cuyahoga Counties in N.E. Ohio.
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