Coming out of student loan debt and entering the workforce, Millennials all over the country are starting to jump into the real estate market, but several are making some costly mistakes.
Below are some of the most common mistakes, and how to avoid them:
- Pouring all assets into a new home: Even if you’ve been saving for a new home, it is not a good idea to put all of your funds into it. Set aside some money in an emergency fund. Should something unexpected happen, you don’t want to be sorry you bought a house.
- Settling for purchasing a condo: A condo may be appealing right now, but think of the long-term investment. Sure, it’s the right price, and it is plenty big enough right now, but will it still suit your needs in five years? Or what will the re-sale value be?
- Forgoing the help of a professional: Searching MLS on your own is fine, but make sure you hire your own realtor. Calling the listing agent yourself will hurt your negotiations because they work for the seller, and are out to get them the highest price possible. You need someone in your corner who will look after your best interests and be your advocate.
- Failing to budget: Don’t rely on online calculations. Doing so can lead to heartbreak if you bid on a place and the financing falls through. A bank or lender can weigh all of the factors for you, and let you know just how much you’ll be approved for.
All blog information is of the opinion of the Loan Officer and is not supported by Fairway Independent Mortgage Corporation. *This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation.
