Offers That Are Fast and Fair

4 Mistakes That May Drive Up Your Cost of Living

Buying a home is a life-changing event that can bring about a host of positive benefits. In order to equip yourself with the right tools for house-purchasing success, it is important that you avoid costly mistakes that might derail your efforts. Here are four mistakes that may drive up the cost of living in the home of your dreams.

Buying in a Community with an Active HOA

An active HOA may seem like a good idea in theory. However, the reality is that all it takes is one control freak leader to ruin the good experience. When looking for the ideal housing situation, it is important to ensure that the HOA fees will not unexpectedly spiral out of control. You do not want to put yourself in the position that you will be left with fees that you cannot afford to cover.

Criminal Convictions

Employers and housing providers often screen for a criminal record, which will restrict the availability of your preferred housing arrangement. Having a conviction on your permanent record may make you appear to be more of a risk, leading lenders or landlords to hesitate to work with you. Being upfront about your criminal record is always the best course of action. It is also important to demonstrate that you have stayed clean since the conviction.

Not Having Health Insurance

Although it may seem like you are saving a significant amount of money each month by not having health premiums, this choice can come back to haunt you financially. There are many budget friendly options for health insurance. Even if you are in good health, you never know when disaster will strike. Suffering a medical crisis and not having health insurance can leave you with a mountain of debt. This crippling debt may make it difficult to qualify for quality housing.

Having a Foreclosure on Your Record

While it may be tempting to get out from under the debt of a home that you cannot afford, a foreclosure should always be the last resort. Depending on the type of loan that you are aiming to get, you could wait for up to seven years after a foreclosure to qualify again, and your interest rate could be higher than it would be otherwise. In the meantime, it is critical that you handle credit responsibly and demonstrate job stability.

By avoiding these four mistakes, you will be afforded with a greater variety of housing options. This will make it easier to secure the housing that you need for a happy life.