Purchasing a home is a big step in life. If it’s your first home, you’ll never forget the day you became a home owner. It’s also a milestone if you’re an experienced home owner, as it signifies that you need more space for your family or have moved and settled into a new place.
However, the home buying can be intimidating. There are many ins and outs to the process, and not knowing what you’re in for can be a costly mistake. To help prevent you from making an expensive error, Titonka Savings Bank has put together a list of five things you can’t afford to when purchasing a new home.
- Forgetting about all the costs– this is especially true if you are buying your first home. When purchasing, there’s your down payment, principal with interest, property taxes, homeowners insurance, utilities, appraisal fee, credit report fees, escrow fee up front and then any maintenance costs once the home is yours. Plan wisely.
- Falling in love with a house– it’s easy to get caught up in all the great things a house has to offer. Stick to your budget and prioritize your needs to keep from straying off course.
- Buying a home you can’t afford– a no brainer, right? Then why do so many people do it? Take time to crunch the numbers, and don’t forget those additional costs we talked about!
- Making a down payment that is less than 20 percent– do this, and you’re looking at the additional cost of private mortgage insurance.
- Skipping an inspection– we know it’s another thing to pay for, but you’ll be thankful if the inspector points out some serious issues you couldn’t see and saves you from a investing in a money pit.
Above all, be thorough and be sure to ask a lot of questions. It’s better to ask and be sure than not. On the financial side of things, Titonka Savings Bank can provide a listening ear and helpful hand in finding the right mortgage. Simply call and or stop by and ask to speak with any of our mortgage lenders today.
Titonka Savings Bank, Member FDIC and Equal Housing Lender