You’re buying a home! Can you believe it? Pretty soon you’ll be running barefoot on your own fresh-cut lawn and chasing your kiddos around the sprinkler. But you need to beware of a few home-buying mistakes.Buying a home is one of the largest purchases you’ll ever make, and doing it wrong will cripple you with stress and rob you of your other financial goals. So protect yourself by knowing what notto do.Here’s a list of typical home-buying mistakes and how to avoid them.
Mistake #1: Buying a House When You Have Debt
Trying to buy a house when you’re in debt is like trying to run a marathon with a bunch of weights chained to your legs. Even if you make it to the finish line, you won’t get your medal (or any free bananas) because everyone else will be long gone by the time you make it there. Debt weighs down your monthly budget. It holds back money that could otherwise speed up your house savings goal. Piling a mortgage on top of monthly debt payments like student loans, car loans or credit cards will put you just one emergency away from foreclosure.Instead, push pause on the house for now, and dump the debt that’s holding you back. Then build and maintain a full emergency fund to protect yourself from ever going back into debt. Read More