Buying Tips

13 WORST MISTAKES

Buying a home can be one of the most exciting and rewarding times of your life. Or it can be a roller-coaster ride of financial and emotional devastation. It depends on what you do. And what you do, depends on what you know. Most homebuyers do not have enough accurate knowledge. Worse, many are ill-informed.

This booklet lists 13 of the worst mistakes made by homebuyers. It suggests, briefly, how to avoid these mistakes so that buying a home will indeed be an exciting and rewarding experience. 


WORST MISTAKE NUMBER 1

Exceeding Your Future Financial Limits

Financial stress is horrific. It tears families apart. The most important financial question to ask yourself, before you buy a home, is: "What's the worst that can happen?" What if interest rates rise? What happens if you buy based on two incomes and you lose one income? Think of the future. Your financial limit today will rarely be the same as your financial limit in the future. Sure, it might be better. But what if it's not? What if things get worse? Play it safe. Make sure that when you buy a home, you will be able to keep your home. 


WORST MISTAKE NUMBER 2

Buying What You Want Instead of What You Need

There are TWO kinds of buyers: Those who buy what they want, and those who buy what they need. The public world of materialism is often a private world of financial stress. Do you need four or five bedrooms? Do you need to live in the "best" area? You can buy a better home in a less expensive - and less prestigious - area. What's more important - struggling to maintain an image of wealth or living safely within your means? Most buyers could save tens, even hundreds, of thousands of dollars by buying what they need instead of what they want. Think about it. Be careful.

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