Many homebuyers will say they just fell in love when shopping for a new home. But the saying, “love is blind,” is common in many cases. The idea of buying your dream home creates the rose-colored glasses effect for new house hunters.
This effect can cloud your better judgment, leading to mistakes all buyers should avoid, like living beyond your means and more. Taking your emotions out of the equation will help you avoid common homebuyer mistakes if you live in Rhode Island. Read more from the Nathan Clark team at Your Home Sold Guaranteed Realty on how to prevent typical homebuyer mistakes.
Get Comfortable With a Monthly Amount You Can Afford
If you are shopping for expensive homes in Rhode Island, you may be disappointed. Before beginning your house search, evaluate your finances to determine your monthly budget. Get comfortable with a dollar amount you can stick to avoid financial difficulties like falling behind on payments. New homebuyers often see homes they would love to purchase before knowing their budget or receiving their pre-qualification letter from a lender.
Estimate What Home You Can Afford Without Breaking the Bank.
A great way to start calculating what you can afford is through a free mortgage calculator. Knowing this information will help you determine the best Rhode Island homes within your price range. The next step is reaching out to a trusted lender who will tell you how accurate your figures are based on your specific situation.
Knowing Your Prepayment Privileges and Payment Frequency Options Can Save You Money
Many homebuyers are unaware of their payment options for their mortgage. Some lenders will charge penalties for paying off a mortgage early or making extra payments. Before committing to your mortgage, speak to your Rhode Island lender about prepayment privileges and any penalty fees that may occur for attempting to pay down your mortgage early.
Make Your Mortgage Payments Work in Your Favor
You can save loads of money in the long run by making extra payments to your mortgage. Paying weekly or biweekly is a great way to avoid long-term interest and the number of years it takes to pay it off. Strategies like paying weekly or biweekly or authorizing a prepayment percentage of your mortgage are a great way to avoid long-term interest and the number of years it takes to pay it off.
Reach Out to Us When You Want to Buy a Home in Rhode Island
Your Home Sold Guaranteed Realty- The Nathan Clark Team have trusted preferred lenders we work with to arm you with all the information you need to avoid homebuyer traps you can’t get out of.
Call us at 401-288-3557 or fill out the form below for more information.