new home. And it should be an exciting time, whether it’s a first- time buyer or a more seasoned buyer who is looking to downsize. After all, you’re looking forward to enjoying a new stage in life, so it’s natural to feel some excitement. The problem comes when you start seeing through rose-colored glasses and clouded judgment. Your emotions tend to take over, and instead of remaining calm, cool, collected, and rational, you could end up making some easily avoidable mistakes—mistakes that could cost you dearly, in terms of both money as well as your goal of moving into that perfect smaller-sized home that meets your needs and most of your wants. So, yes, be excited for this next season of your life, for what lies ahead, for your new lifestyle, and your new home—but keep that excitement “in check” so you can avoid the following common buyer mistakes:
MISTAKE #1: NOT KNOWING YOUR BUDGET OR CREDIT SCORE
Most homeowners in the process of downsizing stand to make a sizable profit and have some extra cash flow to help them out in their retirement years. However, this doesn’t mean that you should automatically assume you’ll be fine and don’t need to think about budgeting or what your budget even is. One of the first mistakes common to all types of buyers is not knowing what they can realistically afford, both when it comes to the price of the home itself, as well as all other costs, such as down payment, monthly mortgage, closing costs, property tax, maintenance, etc. Not knowing what you can afford is the wrong way to go when buying a home, regardless of how much you expect to make off the sale of your current home and regardless of what you expect your future finances to look like.
116
Powered by FlippingBook