Buying Tips

Consider these cautions.

Here's a list of some common pitfalls you'll want to avoid.

Continuing to rent because it seems cheaper. Make sure you compare the monthly cost of renting to the monthly cost of owning a home. It's too easy to look only at your immediate circumstances and miss the long-term, future perspective.

Worrying too much about your job security. If losing your job is highly likely, or relocation is immenient, then put off buying a new home. But remember that few people have to worry about losing their jobs -- and most who do recover quickly.

Letting others push you into a decision. Many people -- friends, relatives, and those involved in the business transactions -- have their own reasons to talk you into buying. Consider the advice of a team of people. Take the time to think through your choice. Be careful of the peer pressure of friends and relatives who will tell you that buying a home is the "mature thing to do." Find an agent whose own desire to sell you a home is balanced by your conviction that this person is still out to serve your interests.

Overbuying or underbuying. Be careful of the extremes: letting what you want badly cause you to outbuy your budget, or borrowing and buying far under what you can afford. The first choice might result in bankruptcy; the second choice in quickly needing to repeat the process of buying a home.

Worrying about being locked out of an escalating market. If you postpone buying for many years, you will probably buy less home for the same amount of money. But do not let the news of escalating prices convince you that you will be locked out of the market. It has never happened before and patient buyers will be rewarded.

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