So what can YOU do to protect yourself? Here’s a list that I have compiled from my own experiences:
- Know where you are going to be for the next five years – at least. Transfers can cost a lot of money and anguish.
- Understand the type of loan you are getting. Do your own research (and don’t take the word of your broker, your realtor, your cousin Jenny, or your uncle Billy) on loans by calling the big banks yourself.
- Take advantage of the VA loan. Sure, some sellers won’t like them (due to extra inspections required with VA loans, and a longer loan processing time), and you have to consider that. However, a conventional loan (if you don’t have a lot of money to put down) will cost you a lot of extra money over a whole lot of years.
- Don’t think about how much you might love the property; think about how much other people will love the property. You never know when (or why) you’ll have to turn around and sell it.
- Budget appropriately. Take your real estate location seriously. Know what you can afford and what you can’t afford. Know what you can live with and what you can’t live with.
- Be real with yourself. Can you handle a fixer-upper? Do you want a turn-key home? Consider your expectations and what you are willing to do to make your house a home.
- Take into account how much the house will really cost you. That includes the mortgage, homeowner’s insurance, and the taxes, too. Consider how far you will have to commute and how much the gas (and time) will cost you.
- Talk to the housing inspector during the inspection. Ask him/her what kind of problems houses of that age (and neighborhood) have.
- Keep a repair budget on hand. All sorts of crazy things will happen as soon as you take possession of the home – things that will have failed your notice during the inspection. (For example, the night we moved in, I spend 1 hour VACUUMING out our refrigerator. That’s right, folks: vacuuming. The thing was disgusting.) We replaced the kitchen appliances a month after we moved in.
- Keep calm. It will take some time before the house feels like it is yours. It will happen!!
Read Next: 4 Reasons You SHOULD Live on Base
Photo Credit: Flickr user Nan Palmero
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