Buying a Home - Common Mistakes

Although the process of home buying can be thrilling, buying a home is a huge expense. For many people, it may be the biggest expense to date in their lives. You have to temper your excitement so that you don't �€Å"catch the fever�€� or home buying and let your emotions get the best of you. There are some major mistakes that you can avoid if you keep a level head when you buy your home. Follow these steps to make sure your home buying experience is productive and enjoyable:

Always set a budget
All but the very wealthiest people in the world have some financial considerations when they prepare to buy a home. Consider completing the following tasks before you set your purchase price budget.

Purchasing a home comes with additional expenses, both in the purchasing process and after you own the home.

Securing a loan is an important part of setting your budget. Make sure you know ALL costs and fees associated with the loan of your choice

Consulting a Realtor® and other homeowners can give you great information about the costs that come with home ownership

Borrowing what a lender will allow is NOT the same as deciding what you can afford on a monthly basis. Don't overwhelm your budget to buy your dream home the first time out.

Speak to a lender before you begin
Unfortunately, the loan process is much more complicated than it used to, with a number of factors involved in your ability to qualify.

Before you meet with a Realtor®, make sure that you see a lender.

Consider that what the bank will loan you (your qualification range) is not necessarily the same as what you can afford.

Conversely, if you think that you can afford a $150,000 home but the lender is only willing to lend you $125,000, if you start out looking at more expensive homes and have to scale back, there will be a major difference in what is included in the more expensive house. If this happens, you may never be happy with the less expensive home.