Buying a Home in 2009? Don’t Make These Mistakes!
Many people are looking at the low mortgage interest rates and the falling home prices and thinking that 2009 would be a great year for buying a home. Indeed, if you are in a good position with regard to your credit score, and if you have a fairly secure job and a little bit of money for a down payment, you would be hard pressed to do better than buying a home in 2009. However, it is always important to carefully consider your options and work to avoid mistakes. Free Money Finance offers a list of five mistakes to avoid when buying a home in 2009:
- Thinking short term. This is not the housing market that lends itself well to flipping. In the short term, the house you buy this year is likely to lose value. This means that if you are buying a home in 2009, you need to think in terms of 7-10 years (5 years at the shortest term).
- Not being in touch with your local housing market. Real estate is still very much local. You need to be aware of what is going on in the local market. What does the housing market look like in the place where you are planning on buying a home? Keep tabs on what is happening locally, since the picture can differ from what is happening nationally.
- Not looking for deals. We’re in a buyer’s market right now. You should look for good bargains, and not be afraid to negotiate. You should also look for good deals when it comes to mortgage loan interest.
- Getting a cheap foreclosure without all the details. You can get foreclosure homes in some areas for as little as $1,000 or less. However, these homes often have problems. Make sure that the foreclosure you purchase has minimal baggage.
- Buying too aggressive. Even if it’s a good deal, don’t buy more home than you can afford. Make sure you stick to what fits into your budget. After all, part of the reason we’re in this mess is due to aggressive home buying.
