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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 January 3, 2020

The 10 Essential Habits of Positive People

The 10 Essential Habits of Positive People

Are you waiting for life events to turn out the way you want so that you can feel more positive about your life? Do you find yourself having pre-conditions to your sense of well-being, thinking that certain things must happen for you to be happier? Do you think there is no way that your life stresses can make you anything other than “stressed out” and that other people just don’t understand?  If your answer is “yes” to any of these questions, you might find yourself lingering in the land of negativity for too long!

The following are some tips to keep positive no matter what comes your way. This post will help you stop looking for what psychologists call “positivity” in all the wrong places!  Here are the ten essential habits of positive people.

1. Positive people don’t confuse quitting with letting go.

Instead of hanging on to ideas, beliefs, and even people that are no longer healthy for them, they trust their judgement to let go of negative forces in their lives.  Especially in terms of relationships, they subscribe to The Relationship Prayer which goes:

 I will grant myself the ability to trust the healthy people in my life … 

To set limits with, or let go of, the negative ones … 

And to have the wisdom to know the DIFFERENCE!

 2.  Positive people don’t just have a good day – they make a good day.

Waiting, hoping and wishing seldom have a place in the vocabulary of positive individuals. Rather, they use strong words that are pro-active and not reactive. Passivity leads to a lack of involvement, while positive people get very involved in constructing their lives. They work to make changes to feel better in tough times rather than wish their feelings away.

3. For the positive person, the past stays in the past.

Good and bad memories alike stay where they belong – in the past where they happened. They don’t spend much time pining for the good ol’ days because they are too busy making new memories now. The negative pulls from the past are used not for self-flagellation or unproductive regret, but rather productive regret where they use lessons learned as stepping stones towards a better future.

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4. Show me a positive person and I can show you a grateful person.

The most positive people are the most grateful people.  They do not focus on the potholes of their lives.  They focus on the pot of gold that awaits them every day, with new smells, sights, feelings and experiences.  They see life as a treasure chest full of wonder.

5. Rather than being stuck in their limitations, positive people are energized by their possibilities.

Optimistic people focus on what they can do, not what they can’t do.  They are not fooled to think that there is a perfect solution to every problem, and are confident that there are many solutions and possibilities.  They are not afraid to attempt new solutions to old problems, rather than spin their wheels expecting things to be different this time.  They refuse to be like Charlie Brown expecting that this time Lucy will not pull the football from him!

6. Positive people do not let their fears interfere with their lives!

Positive people have observed that those who are defined and pulled back by their fears never really truly live a full life. While proceeding with appropriate caution, they do not let fear keep them from trying new things. They realize that even failures are necessary steps for a successful life. They have confidence that they can get back up when they are knocked down by life events or their own mistakes, due to a strong belief in their personal resilience.

7. Positive people smile a lot!

When you feel positive on the inside it is like you are smiling from within, and these smiles are contagious. Furthermore, the more others are with positive people, the more they tend to smile too! They see the lightness in life, and have a sense of humor even when it is about themselves. Positive people have a high degree of self-respect, but refuse to take themselves too seriously!

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8. People who are positive are great communicators.

They realize that assertive, confident communication is the only way to connect with others in everyday life.  They avoid judgmental, angry interchanges, and do not let someone else’s blow up give them a reason to react in kind. Rather, they express themselves with tact and finesse.  They also refuse to be non-assertive and let people push them around. They refuse to own problems that belong to someone else.

9. Positive people realize that if you live long enough, there are times for great pain and sadness.

One of the most common misperceptions about positive people is that to be positive, you must always be happy. This can not be further from the truth. Anyone who has any depth at all is certainly not happy all the time.  Being sad, angry, disappointed are all essential emotions in life. How else would you ever develop empathy for others if you lived a life of denial and shallow emotions? Positive people do not run from the gamut of emotions, and accept that part of the healing process is to allow themselves to experience all types of feelings, not only the happy ones. A positive person always holds the hope that there is light at the end of the darkness.  

10. Positive person are empowered people – they refuse to blame others and are not victims in life.

Positive people seek the help and support of others who are supportive and safe.They limit interactions with those who are toxic in any manner, even if it comes to legal action and physical estrangement such as in the case of abuse. They have identified their own basic human rights, and they respect themselves too much to play the part of a victim. There is no place for holding grudges with a positive mindset. Forgiveness helps positive people become better, not bitter.

How about you?  How many habits of positive people do you personally find in yourself?  If you lack even a few of these 10 essential habits, you might find that the expected treasure at the end of the rainbow was not all that it was cracked up to be. How could it — if you keep on bringing a negative attitude around?

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I wish you well in keeping positive, because as we all know, there is certainly nothing positive about being negative!

Featured photo credit: Janaína Castelo Branco via flickr.com

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