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Buying a Home without Ruining your Finances: Avoiding Costly Homebuyer Mistakes

Buying a Home without Ruining your Finances: Avoiding Costly Homebuyer Mistakes

The National Association of Realtors (NAR) recently reported that most people feel that purchasing a home is both an important financial milestone and a good investment. However, buying a house is only a good investment if you have planned to spend only what you can comfortably afford.

The NAR study also reported that 43% of homeowners feel financially strained by their current mortgage payments, meaning that many homeowners were not prepared for the realities of the home buying process. Before beginning your housing search, here are some costly mistakes that you can avoid while planning to purchase in Fort Worth.

Choosing the Wrong Realtor

An inexperienced realtor can cost you more money than the fees associated with their commission. Selling in Fort Worth is not that different from selling in any other major metro area; Fort Worth homes are subject to volatile market conditions, and an experienced realtor can safeguard their buyer's interest and money.

Remaining anchored to a home that is out of your price range or in an area that typically fluctuates in value are all conditions that can be predicted by an experienced realtor.

A top realtor helps buyers make tough decisions and provides all the information needed to feel confident in your choice. Most inexperienced realtors do not have the ability to provide all these services, and this can cost buyers in the long run.

Buying More Space Than You Can Afford

Falling in love with a house that is out of your planned price range is the worst thing a potential home buyer can do to their finances. Envisioning your life in a beautiful home is understandable, but first you need to make sure you can afford the property.

Before becoming emotionally attached to the house, you should prepare a budget. This budget needs to be based on the financial information provided to you by your lender. Your financial institution will determine how much you can afford to spend on your home, but they will not tell you what size home you can afford.

A larger home will typically cost more than a smaller one, and the price of the house doesn't stop at square footage or property price tag. Paying for a home doesn't end once you've signed your mortgage. Larger homes will command more furnishings and expensive utility bills, so be careful that you can afford the home you've chosen.

Not Understanding Your Financial Tools

Many home buyers make the mistake of being prequalified instead of preapproved. This is an important step, and you should make certain that you get it right. A pre-approval will ensure you have buying power equal to what you can afford.

A pre-qualification does not factor your existing debt into the assessment and therefore doesn't provide an accurate snapshot of what you can comfortably spend. Opt for a preapproval, which is more reliable than a prequalification. Before you prepare to spend your money, you should know how much money you have at your disposal. Homeowners often confuse these two financial tools, and it's a costly mistake.

Currently, securing one of the many Fort Worth homes for sale in the market will require spending at least $245k. The average sales price for a home in the market has already increased by 4.1% this month, which means that buyers looking for a home will have to decide how increases like these will affect their budget.

Many buyers choose to push their budgets to breaking point, but it's important to realize the impact this could have on your overall finances. The best way to ensure that the home buying experience remains positive is to plan before you spend and surround yourself with qualified professionals. Hiring an agent from HFMA will give you access to an experienced body of agents and support staff; drop us a line and we'll be glad to help you avoid these costly mistakes.

About the Editor

Tanya Stewart

Ms. Stewart holds a B.S. in Engineering Psychology from the University of Illinois, Champaign-Urbana and Juris Doctorate law degree from the University of Georgia, Athens. She has over 15 years of experience running different businesses. She taught Marketing and Strategy for the Georgia branch of GKIC, a global Entrepreneurship & Marketing company.

GKIC influences more than 1 million business owners per year. Tanya specializes in Strategy for the business and implementation of the tactics necessary to execute the Companys plan. She also develops content, creates and refines campaigns and manages agents and staff to keep them on task. As a professional speaker and published author, she is articulate and persuasive, and serves as the American face of the company.

Her happy journey from Engineering-Psychology and through Law school merged into 15 years running different businesses. A professional speaker and published author, she has taught Marketing and Strategy for the Georgia branch of GKIC, a global Entrepreneurship & Marketing company that influences more than 1 million business owners per year. In seeking a new way to be of service, she Co-Founded to combine her love of digital marketing and people.

Tanya Stewart
Vice President Sales &
Co-Founder of HFMA

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