AVOID THESE TWO BIG MORTGAGE MISTAKES
We all know that searching for and viewing potential homes is the fun part of the home-buying process. The not-so-fun part? The mortgage.
But if you ignore the details, your mortgage can end up dragging down the enjoyment of your new home and cause some major regrets. Here are a few mistakes to avoid to ensure that you love your mortgage terms as much as your new home.
- Don’tfind your home first: Shopping around for the best mortgage rate should be the first step in the home buying process. You may even want to talk to a mortgage broker a full year before you plan to buy. It’ll give you time to get your affairs to qualify for the best rate, could save you thousands of dollars in the long run, and you won’t feel rushed to accept an unattractive loan because you’re worried you’ll miss out on your dream home.
- Don’tforget your actual budget: There’s often a big difference between what a lender says you can afford and what you can afford. Your debt-to-income ratio doesn’t include the money you spend on hobbies, the cost of commuting to work, or maintenance and utility costs.
- Sit down and examine your spending before committing to the loan amount the lender is offering. You won’t enjoy your home nearly as much if it’s eating into your favorite hobbies.
TAKE 5: WHAT AFFECTS PROPERTY VALUES?
Some features that increase property values are apparent—like a remodeled bathroom, a modern kitchen, or a sought-after neighborhood. A few features and circumstances can affect property value due to the market’s overall demand and supply pressures due to the existence of economies of scale-like in the case of any other product.
Factors influencing property price:
- The neighbors: Not every neighborhood or community has an HOA to keep the neighbors from going overboard with decorations or neglecting to care for their home. Homes adjacent to crazy neighbors can potentially be undervalued.
- Trendy groceries and coffee: Recent statistics suggest that if your home is a short walk from popular grocery stores like Whole Foods or coffee chains like Starbucks, it can appreciate faster than the national average.
- Mature trees: A big beautiful tree in the front yard is enviable, and it’s not something that can be easily added to any home. Homes with mature trees tend to get a little boost in value.
- Parking: This isn’t too much of an issue if you live in the suburbs or a rural area, but residents in dense cities can have real problems with parking, and homeowners might need to rent a spot to guarantee a place to park each night. That’s why having guaranteed parking in urban areas will raise property values.
- The front entrance: First impressions matter to buyers—many will cross a home off their list within 10 seconds of stepping through the front door. An appealing front door, a nice entryway, and a functioning doorbell are necessities for getting top dollar.