10 Ways to Lose Your Home – Part 2

Picking the Wrong Neighborhood

The three most important words in real estate: location, location, location, are a joke to you, but you never got the punch line. Besides, driving through a neighborhood will tell you everything you need to know about an area. There is no point in asking the police department about crime statistics or talking to neighbors before you buy. To you, living next to a grocery store means you can pick up a carton of milk without walking very far. Even though a few boarded-up homes on the block sport rotting mattresses in the front yards, it doesn’t affect your market value. You can instantly recognize a good buy when you find it, especially if it’s priced thousands less than homes in neighborhoods you’ve considered but cannot afford.

Purchasing the Most Expensive Home

The most important factor to consider when buying a home is to make sure your home is the largest and most expensive home you are pre-qualified to purchase. You will derive great pleasure in bragging about your elaborate new home to friends and family and want to make sure your home is impressive. There is no such word as compromise in your search for a home. If you need three bedrooms, a five-bedroom is better, even if the home that fits your needs costs less. The more bells and whistles it has, the more you will love it. As far as you’re concerned, you can’t be stretched too thin if every single design element of the home is perfect for your tastes, and you’re willing to reach higher than common sense dictates to get it.

Passing on Proper Home Inspections

Everybody knows that home inspections are a waste of money and time. There is no known default in a home that can’t be spotted with your own eyes, and qualified home inspectors aren’t going to conduct any visual inspections that you can’t do on your own. If a home has four walls, a roof and somebody is willing to occupy it, you can fix any minor problems that surface later on. Besides, suing the seller and everybody involved in the transaction after it closes is always an attractive alternative. You would prefer to save the money you would throw away on a home inspection and instead buy a new barbecue grill. It doesn’t matter that the interior walls are crumbling because a fresh coat of paint works wonders.

Altering Financials Before Closing

Now that you’ve finally taken that leap, written an offer that was accepted by the seller, you’re still in the buying mode. While waiting for loan funding, you may decide it’s a good idea to buy a new car to match that new home. Better yet, you may as well buy new living room furniture; oh, and a big screen TV would fit on the wall over the fireplace like a glove. In fact, there’s a sale on washer and dryers, and you’ve always wanted a new fangled front loader. Your excellent credit report affords you the opportunity to buy whatever you desire and, besides, there are no payments due for a year. It’s like getting a new car and home furnishings for free. After all, more debt shouldn’t affect the funding of a mortgage.

Plunging Into Debt

Now that you’re a homeowner, you’re blown away by all the incentives arriving in the mail offering great deals on a home equity loan. Why, you can pull out all your equity and use this new-found money to buy all those necessities you’ve been denying yourself and your family. A vacation in Hawaii next December sounds wonderful to you. So does buying patio furniture, and maybe new decking or a spa for the back yard. While you’re at it, maybe you should remodel the kitchen, too, and put in granite counters, perhaps new appliances. You can afford it. You will never lose your job or need money for a medical emergency; times are good right now!

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About the author: Joe Fiorilli