If you are looking for a new home to build or buy, it’s worth a second to consider some of the top mistakes home buyers in Idaho make, and how to avoid them.
- Buying More Home Than You Can Really Afford
Buying a new home is fun and exciting, and when looking at all the options, it is easy to justify going over budget. In all the excitement many people tend to look for homes that are at the high end of what they can afford to pay each month. The problem with this mentality is that it does not account for changes in employment, health, or other life events that could effect income levels. A good rule is to make sure your house payment, utilities, transportation costs, and groceries, do not equal 50% or more of your current monthly income. This leaves plenty of room to adjust for a loss of income, or to start saving for the future.
- Buying Too Soon
Don’t buy a home with the idea that you can sell or rent if something does not work out. I just had a client purchase a new home in Boise because he accepted a new job in the area. Unfortunately the new job did not work out, and he ended up moving back, and taking a loss on the new house he purchased just 3 months earlier. Unless you are certain you could sell for a profit, or are in an area with a high rental demand, I would recommend renting for a short while to make sure things are stable.
- Skipping The Inspection
Home inspections do cost several hundred dollars, but as the old Ben Franklin saying goes, an ounce of prevention is worth a pound of cure. An experienced inspector can alert you to possible costly repairs BEFORE you purchase the home – saving you hundreds and perhaps thousands of dollars in future repair costs.
- Spending Sprees After Home Purchase
It is completely normal to want to furnish your new home with all new furnishings and appliances. Be cautious, you can put yourself into serious financial trouble by adding on a pile of new credit card debt along with having a new house payment. If your new furnishings or appliances aren’t in the budget after the home purchase, create a plan to make those large purchase a little at a time.
- Working With The Wrong Professionals
Unfortunately there are always people in the real estate and mortgage industries that care more about making money for themselves instead of looking out for your best interests. Get referrals and ask for references. Purchasing a home is a very personal decision, and it can also be stressful at times. Make sure you are working with a professional who you feel comfortable with, and understands your wants and needs.