We all make financial blunders in our life, wishing we hadn’t splurged on that TV or the impulse purchases we made at the grocery store. We learn from the small mistakes and move on. However, there are larger gaffes that we definitely want to avoid when buying a Black Hills home.
Over-Committing on Your New Home
While you may be able to afford that large house on paper, what makes sense for your lifestyle in everyday life and allotting for extra savings can be another thing. Buying too much house can leave you “house poor,” meaning your monthly housing expenses use up most of your residual income.
Don’t forget that owning a home means other expenses on that home each month and throwing all your income into a mortgage payment can leave you one emergency away from financial ruin. Make sure you have discretionary funds to cover your needs after you’ve paid the major expenses each month.
No one can predict losing a job or facing medical emergencies. Buying a home that affords you the space you need, the ability to update at your own pace and allows you to stay current on your new mortgage while meeting other obligations each month are the keys to being a successful homebuyer.
Skimping on a Home Inspection
In most areas, home inspections aren’t mandatory but that doesn’t mean they should be ignored. Professional inspectors have the expertise to uncover all types of defects and potential problems lurking in that potential new home.
Investing in a home inspection now can save you thousands of dollars in the long run. You can also use that home inspection report as a negotiating tool with the seller to get certain things fixed, negotiate price or to walk away completely from the deal if a major problem is found with the house.
Being Blind to Your Options
A local Realtor® not only can help you with their knowledge of local areas and where to buy, they can also help educate you on your home loan options.
Millions of veterans and service members have access to the historic VA loan program and may not know it. This program offers no down payment, no mortgage insurance and accepts lower credit scores than conventional financing.
There are other local and state home buying assistance programs that you may not be aware of that can help you with your new home loan including a USDA Rural Development Home Loan.
Learning all the mortgage options available allows for sound decision-making and a smooth pre-approval process to make the home buying process easier in the end while saving you money.
Be prepared and realistic with your home buying goals and trust in an experienced Realtor® to help guide you through the process. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact Jim Peterson at (605) 574-4444 or June Johnson at (605) 786-7356 at Integrity Realty Team, or email us to discuss how we can help you with all your real estate needs.
Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience! Like us on Facebook to stay current on all upcoming events!
Jim Peterson Integrity Realty 