Mistake #2: Disregarding Hidden Costs A lot of home buyers disregard, or are ignorant of, hidden costs in purchasing a home. If you don’t prepare for hidden fees, you might be in for a surprise. Closing costs are a good example, as they usually include several fees that cover final housekeeping matters, but many buyers don’t factor in this expense as part of the overall cost of purchasing a home. As a homeowner, remember that you’ll have additional expenses on top of your monthly mortgage payment. For example, you’ll be responsible for paying property taxes, insuring your home against disasters, paying HOA or condominium fees, and making whatever repairs the property requires. Mistake #3: Not Knowing Your Credit Score Many buyers don’t bother looking into their credit score when making financial preparations for their home-buying experience, but if you decide to apply for a mortgage loan without checking your credit score, you could end up paying a lot more than you expected. It’s best to get a credit check beforehand. Good credit is a critical component in applying for a home loan, and there are steps you can take to repair any potential credit problems that crop up, as discussed in a previous chapter. Mistake #4: Disregarding Local Housing Market Trends Many buyers don’t pay attention to local housingmarket trends, which is a bigmistake. Why? The housingmarket fluctuates over time; it’s just how real estate works. Sometimes, it favors buyers (a buyer’s market), and sometimes it favors sellers (a seller’s market). Further, sometimes the market can shift dramatically over a three- to six-month period. Several factors affect housing market trends, including the ratio between supply and demand,
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