Buying your dream house can be a financial nightmare if you’re not careful. Beyond finding the right home with the perfect neighborhood price in Salt Lake City, there are certain factors that most first-time home buyers give little to no attention. Here are some of those mistakes you should try to avoid.
Maxing Out Your Mortgage
Once you’re mortgage qualified, you may be tempted to maximize your loan for the house you’re dreaming to have. However, you may find most of your budget relegated to your mortgage, and this can cause quite a shock to your finances.
Reserve only 30% of your combined salary for the house payments, so you still have a financial margin manageable enough for your other needs. Altius Mortgage, a mortgage company in Salt Lake City, says you may need the help of brokers to shop around for the best rates.
Not Factoring in Additional Property Expenditures
Now that you will own that house, you need to have it maintained and repaired when needed. Don’t forget about any renovations or restorations. Add to that the property taxes, home insurance, and home association dues. Make sure you figure these extra fees, so you know you can keep to your budget.
Don’t be taken over by the shiny new upgrades or the fresh coat of paint. A house inspection makes you aware of other repairs and upgrades you need. You may end up with a money-gobbling structure if you don’t get a professional to give you a second and realistic opinion about your dream house.
Having the house of their dreams is one of the ultimate goals of most homeowners, and it’s not a bad objective. Be realistic about your choices. Failing to do so can result in a realty nightmare you will find hard to wake up and walk away from.