There are some things in life that don’t require much thought or preparation to purchase: soap, a gallon of milk or paper towels. You buy these things because you need them; they’re cheap and readily available.
On the other hand, a large purchase, like a new home, requires research and preparation. Here are some common mistakes from the home lending experts at Iowa State Bank.
Falling in love with a house- it’s easy to get caught up in all the great things a house has to offer. Stick to your budget and prioritize your needs to keep from straying off course.
Making a down payment that is less than 20 percent- do this, and you’re looking at the additional cost of private mortgage insurance.
Forgetting about all the costs- this is especially true if you are buying your first home. When purchasing, there’s your down payment, principal with interest, property taxes, homeowners insurance, utilities, appraisal fee, credit report fees, escrow fee up front and then any maintenance costs once the home is yours. Plan wisely.
Buying a home you can’t afford- a no brainer, right? Then why do so many people do it? Take time to crunch the numbers, and don’t forget those additional costs we talked about!
Buying if you aren’t staying put- renting is great for those that move around a lot; purchasing a home is not. If you’re buying a home, make sure you’re ready to put down some roots.
Buying a home is a big deal, as are the consequences that go along with not preparing in a realistic manner. If your family is ready to purchase a home, contact the home lenders at Iowa State Bank today to set up an appointment. We specialize in helping you find the home of your dreams with affordable home lending options.