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5 Common Mistakes to Avoid While Buying a House

5 Common Mistakes to Avoid While Buying a House

Buying a new house is a huge step, so it is important that you make your decision very carefully. Small mistakes and ignorance can cost you a lot. If you are not careful, buying a new home can become profoundly exhausting and scary, instead of exciting. It is a massive financial investment so make sure that you avoid any mistakes that can harm or halt your investment.

Here are some of the errors that can be very costly and shatter your dreams of buying a new home so make sure that you avoid them.

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1. Not Having a Clear Budget

The right budget is not what banks think you can afford to pay. It is possible that you are not comfortable with spending that much money. Having a very clear budget in your mind is important. Do not rely on the bank to tell you how much you can afford to spend. Create your budget by listing all the monthly expenses, include the rent in it, cost of using vehicles, loan payments if you have any, payments of credit cards, insurances, savings, etc. Subtract this amount from the take-home pay and you will know the exact sum of money you can afford to spend.

By knowing the exact budget, you will be able to hunt for houses that are within your price range. By not knowing the budget you will waste your time on properties that you cannot afford. It is possible that you end up investing in a place that you cannot afford. This can cause a lot of financial problems for you.

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2. Skipping the Qualification of Mortgage

Before you make an offer on a home, it is important that you have a pre-approved loan. You should know whether you qualify for a loan or not. Every loan has its requirements, for example, if you are applying for a reverse mortgage, you should have all the reverse mortgage information. It is important that the money the bank is lending you matches with the offer you are making for a house. The bank can reject or decrease the loan if you have poor credit or unstable income which can cause problems if you have already made an offer.

It is important to be careful even if you have a pre-approved mortgage as it is possible for it to fall through because of any significant change in the credit score. If the deal falls through, you will have to forfeit a lot of money, and it can be a major financial setback.

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3. Not Considering Added and Hidden Costs

Buying a house is not as simple as it looks. There are so many things that you have to consider. It is not just a simple act of moving from rent payments to paying the mortgage. There is the closing cost, insurance of homeowners, property taxes and the homeowner’s association fee. Most of the home buyers have all the major costs in mind, but they fail to consider hidden costs such as the maintenance cost. It is possible that when the added and hidden costs are included, the house becomes over budget. That is why it is important never to forget the hidden costs.

You can get an estimate of the whole cost by asking about average maintenance, a cost of insurance, taxes, etc. Add them to the monthly mortgage to know exactly how much the house will cost you.

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4. Skipping the Down Payment

Always keep the financial housing crisis in 2008 in mind, as one of its causes was giving mortgages to buyers who were unable to pay the down payments. When you skip one of the payments, it means that the mortgage payment gets higher along with the interest payment. Then the expenses will also increase because you need to pay insurance until at least twenty percent of the house is paid off.

5. Not Inspecting the Interiors

Do not spend your money by looking at the exterior of the house. It is possible that the most beautiful house can become a nightmare for you. It is not cost-effective to get stuck with the trouble of spending on unexpected repairs. Always take on the opportunity to inspect the interior of the house. It will help in seeing the actual state of the house.

While making your purchase makes sure that you do not make any of the above mistakes. If you manage to avoid these errors, then you will easily buy the best house within your budget.

Featured photo credit: US News Money via media1.fdncms.com

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Last Updated on July 5, 2019

5 Reasons Why You Should Always Be Yourself

5 Reasons Why You Should Always Be Yourself

When it comes to being yourself, there can be a lot of pressure from the outside world as it tries to influence who you are. Living in a society that is constantly developing, it’s important for you to always be yourself from the inside out. When you deeply know yourself and the boundaries that you have set, you are more likely to experience a fulfilling and rewarding life. Without knowing yourself and establishing those boundaries, you can easily be pushed around and end up on a dirt path.

“Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it. But small is the gate and narrow the road that leads to life, and only a few find it” – Matthew 7:13-14

You have the option of taking the path that is broad or taking the path that is narrow. You can either conform to what life wants you to be, or have the courage to remain true to yourself throughout the years. It’s definitely a challenge to have a strong sense of self when we are constantly getting distracted and being influenced by the media and society’s way of life. But if you want to reach your fullest potential in life, it all starts with being yourself.

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Why should you always be yourself?

Because you will:

  1. Live in alignment with your values and beliefs. Being yourself is all about knowing what you believe in and the values that you live by. When you are not yourself, you will take on the values and beliefs of others. This is when you start conforming to other people’s expectations and way of thinking. When you know your values and why you do what you do, you will live according to your own values and beliefs.
  2. Establish your own identity. When you are able to have a solid foundation of being you, you are establishing your own sense of identity. No matter what happens in your life, you will always know who you are. There will be times where you may feel lost or distracted, but if you have your own identity you’ll be able to get back on the right path. Without establishing your own identity, you may easily conform and lose yourself.
  3. Build courage. It takes a great amount of courage when you decide to take the path that goes against the crowd. The reason why the majority of people take the broad path is because it’s easy. It’s easy to just follow the crowd. It’s more of a challenge when you stay true to yourself and establish your own identity. This challenge of always being yourself takes courage and inner strength. No matter what comes your way, you’ll know how to handle it.
  4. Establish boundaries. When you are always yourself, you know what your limits are and the boundaries that you have set for yourself. When people cross your boundaries, you will know. But if you don’t establish boundaries, people may very well walk all over you and take advantage of you. If you are always yourself and you establish boundaries, you are more likely to be aware when people start taking advantage of you. Create and establish your boundaries.
  5. Find focus and direction. When you are always yourself, you are more likely to have focus and direction in your life. Imagine someone who is constantly conforming to other people’s expectations. Do you think this person has focus and direction? I don’t think so. When you stay true to who you are, you are more likely to know the goals you want to accomplish and how to go about accomplishing them. You are able to stay focused and know which direction to take in order for you to accomplish your goals.

No matter what you experience in life, the only person that will always remain constant is you.

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Featured photo credit: María Victoria Heredia Reyes via unsplash.com

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