5 Things You Can’t Afford to Do When Buying a Home

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Last month, we touched on how to prepare your finances for a buying a home this spring or summer. Today, we’re still talking about home purchases, but this time we are looking at things you can’t and shouldn’t do if you want a smooth home buying process without extra fees or worse, buyer’s remorse.

Whether you are buying your first home or are trying to find your sanctuary for retirement, these tips will help.

  1. 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.
  2. 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.
  3. 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!
  4. Making a down payment that is less than 20 percent– do this, and you’re looking at the additional cost of private mortgage insurance.
  5. Skipping an inspection– we know it’s another thing to pay for, but you’ll be thankful if the inspector points out some serious issues you couldn’t see and saves you from a investing in a money pit.

Buying a home is complicated enough. Following the above tips can help prevent it from becoming more stressful than it needs to be. Another thing that can help reduce stress and anxiety is working with the right mortgage lender.

Putnam Bank’s mortgage lenders know the area and are experienced in working with home buyers in Windham and New London counties. Get in touch with them through our Online Loan Center to start the conversation about your mortgage needs today.

Putnam Bank, Member FDIC and Equal Housing Lender