Buying a Home
Buying a home can be exciting but incredibly stressful. Online real estate brokerage Owners.com found that 72 percent of potential homebuyers said they expect stress in the homebuying process. Many of the respondents cited the financial aspects of buying a home as their primary worry.
"As one of the largest financial transactions in a person's life, it can be extremely challenging to remove your emotions and approach it with a methodical and rational mind," said Steve Udelson, president of real estate brokerage Owners.com. "This reality is exacerbated even more by the current real estate market, where home prices and interest rates are on the rise, and inventory continues to be low."
Making sure you don't rush is the key to avoiding headaches during the homebuying process. Start by figuring out how much home you can afford based on the amount you have saved for a down payment, and the monthly mortgage amount you can afford to pay without stretching your budget too thin.
Once you've calculated this figure, commit to not exceeding it. Owners.com found that more than half of potential homebuyers were willing to go over their budget by $37,809 on average.
To ensure you don't exceed your budget, Udelson recommends researching the real estate market in your area to understand if the price you're paying for a home is in line with its value. Cut transaction fees with a low-cost brokerage such as Owners.com.
Think critically about how long you will be in the home to determine which mortgage option is best for you. "Thoroughly inspect the home to assess any additional fees before inking the deal," Udelson said.
Related: 8 Ugly Truths About Buying a Home