If you’re buying a home, don’t make these 7 costly mistakes

TheFinanceNewsletter.com
2 min readJan 20, 2024

If you’re buying a home, don’t make these 7 costly mistakes:

1) Not factoring in additional costs of homeownership

• Costs for maintenance, repairs, and unexpected issues that may arise

Plan for 1–4% of the home’s value annually to cover maintenance and repairs

• Property taxes, homeowners insurance, potential homeowners association dues

2) Not researching financing options:

• There are many financing options for first-time buyers.

• Consider FHA and VA loans, which have lower down payment requirements.

• Look into state and local programs that offer assistance for first-time homebuyers.

3) Not considering the location and neighborhood

• Think about what’s important — access to work, amenities, safety, school quality

• Research crime rates, noise levels, and community vibe of different neighborhoods

• Aim for a location near public transit if possible to boost convenience

4) Not considering a fixer-upper:

• If you’re on a tight budget, consider looking for a fixer-upper.

• This can be a great way to get into a home at a lower price point.

• Just be sure to factor in the cost of repairs and renovations.

5) Not assessing your finances:

• Before you start looking for a home, it’s important to understand your financial situation clearly.

• Calculate your income, expenses, and debts to determine how much you can spend on a home.

• Consider factors like your credit score, down payment, and closing costs.

6) Not leveraging technology tools to simplify the process:

• Use real estate search websites and apps to find listings matching your criteria

• Schedule automated alerts for new listings that meet your search filters

• Get instant estimates of mortgage payments on potential homes

7) Not being prepared to negotiate:

When you find a home you’re interested in, be prepared to negotiate the price.

Don’t be afraid to walk away if the seller isn’t willing to meet your offer.

Do your research and know the market value of the home.

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TheFinanceNewsletter.com

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