Buying a home is not an easy process. There are many things to consider and decisions to make, which can be overwhelming for some people. This blog post will go over three things you should avoid before closing on your home that could save you from a headache later on down the line.
Don’t Lease or Buy a New Car
Before getting into the home buying process, you should know how much of a monthly payment you can afford for your new home. Buying a new car is one of the most expensive things some people buy every year, so it’s important to know what you can realistically afford on top of your potential mortgage payment before walking into the dealership. If you already have a car before buying your new home, consider the new house when budgeting for things like insurance or maintenance once the deal is finalized.
Don’t Switch Jobs
Another thing that you should avoid before closing on your home is switching jobs. Moving into a new house can be very stressful, so it’s important not to bring the added stress of potentially losing your job at the same time. A good rule of thumb would be to stay at your current position for three months before purchasing a home, if possible.
Don’t Sign Up for Deferred Loans
Many people get a loan from their bank to cover some of the costs of buying a new home. Many lenders will require you to pay back the money you borrow, along with interest, over a specific period. With most loans, you can choose to make smaller payments or stretch out your repayment schedule over a more extended amount of time if needed. This is one of the perks of taking out a loan. However, some lenders offer you loans to let you defer your payments for up to two years after you buy the home. While this sounds great on paper, it may not be as helpful as you think. The interest that builds over time while you’re deferring payments can be very costly. When you look at the numbers, it is often more beneficial to take out a loan with more manageable amounts owed each month if possible.
Buying a home is an exciting purchase that can also come with many inconveniences, but don’t let these three things ruin your excitement before closing on your new abode.