Buying a home is a huge financial decision. Most likely you will need mortgage for your home, which you will recoup for a very long time – and it will cost you tens of thousands of dollars in interest. You will also need to pay high transaction fees, including closing costs this can range from 2% to 5% of the purchase price.
You don’t want to make the wrong choice and end up in a home you don’t want to stay in or can’t afford. To reduce the likelihood of this happening, look for these three signs that you are making a purchase that you might seriously regret.
Start your path to financial success with a bang
Get free access to select products we use to help us meet our financial goals. These fully proven options can be the solution to help boost your credit score, invest more profitably, create an emergency fund, and more.
By submitting your email address, you agree that we will send you monetary tips along with products and services that we believe may be of interest to you. You can unsubscribe at any time. Please read our Privacy statement as well as Terms and Conditions…
1. You buy a house to impress others.
Too many people are buying a home to keep up with the Joneses or to surprise their friends and family. Unfortunately, the loved ones or social media friends you’re trying to be jealous of are not the ones who have to live in the house every day.
Buying a home that is designed to impress can result in too high bills and too large a property to furnish or maintain easily. The size of the rooms can mean you don’t feel comfortable, and the layout might not be suitable for your family.
Instead of focusing on what “looks” good, it’s better to find a home that suits you and that suits your current lifestyle, rather than the lifestyle you hope people imagine.
2. You are pushing your budget to the limit.
Buying a home that is too expensive is also bound to be regrettable.
If you buy to the maximum amount of your budget, it can be difficult for you to make your monthly mortgage payments, especially if something goes wrong. And you may not be able to complete other financial tasks because most of your money goes into monthly payments.
A more expensive home can also lead to higher property tax bills, maintenance and repair costs. If your budget is already exhausted, covering these costs can be a big problem. If you are not sure how much home you can afford, use mortgage calculator play with numbers.
3. You don’t like this place
Most of the things in the home can be changed over time, be it the look of the kitchen or even the number of bedrooms. But while you can remodel or add an extension to your home, if you need more space, you cannot move the property to a better location.
As a result, the location of your home can be one of the most important characteristics. You will need an area that you enjoy living in, a comfortable ride, and a school district that you are happy with. If a home doesn’t meet these requirements, you may regret your purchase.
Make sure your payments are within your budget, buy a home that works for you (not because it’s impressive), and like – or, preferably, even like – the location of your home. This way, you get a property that is most likely to delight you in the long run.