IN Brentwood-Baldwin-Whitehall Summer 2019 | Page 23

INDUSTRY INSIGHT
INSURANCE
SPONSORED CONTENT
7 BIG HOME-BUYING BLUNDERS AND
HOW TO AVOID THEM
Ready to become a homeowner?
Be sure to avoid these first-time
buyer mistakes.
With record-low interest rates, rock-bottom home prices, and no
house of their own to sell, many young adults are well-positioned
for buying their first home. If you’re ready to become a homeowner,
watch out for these common first-time buyer mistakes:
Not getting a pre-qualification letter. Before you start your
home search, meet with a lender or mortgage broker to
determine how much money you are qualified to borrow.
Having a pre-qualification letter in hand offers peace of mind to you,
the seller, and your real estate agent.
1
Overestimating what you can afford. Go through your
income, expenses, and investments. You may discover that
you aren’t comfortable spending what your lender believes
you can afford.
2
The information in this article was obtained from various sources not associated with State
Farm. While we believe it to be reliable and accurate, we do not warrant the accuracy or
reliability of the information. These suggestions are not a complete list of every loss control
measure. The information is not intended to replace manuals or instructions provided by the
manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage
under our policy. State Farm makes no guarantees of results from use of this information.
Underestimating the costs of home ownership. The expenses
of owning a home go beyond your monthly mortgage
payment. As a homeowner, you’ll be responsible for costs
landlords usually cover, including property taxes, insurance,
association dues, utilities, maintenance, and repairs.
3
Failing to think long-term. Cosmetic details that you can
change should not discourage you from buying a home.
Whether you’re planning to sell the house in a few years or
make it your forever home, finding a home in the right neighborhood
or one with a new furnace may outweigh drawbacks such as a slightly
outdated kitchen or bath.
4
Spending all of your money. Avoid draining your savings to
purchase a home or offering the maximum amount you’re
qualified to borrow. You want to have money left over to
cover unexpected expenses that could arise after you buy.
5
6
Forgoing an inspection. Before celebrating the fact that you’ve
found a home you love, hire a professional home inspector to
find any problems that could impact your decision to buy.
Forgetting the contingency clause. Consider including in your
purchase agreement a contingency clause that allows you to
back out if your loan falls through, the home doesn’t appraise
at its sale price, or you lose your job.
7
And once you’ve found the first home of your dreams, you’ll need
homeowners insurance to protect your investment.
BRENTWOOD-BALDWIN-WHITEHALL
❘
SUMMER 2019
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