Buying a house for the first time is exciting and frightening. Everyone wants a home to call their own, and owning a house is a sign of success. However, that house can come with a severe price attached to it, and it is not just the mortgage. People make some rather serious mistakes, and they can spend years paying for them.
Home buying is a significant financial undertaking, and it does affect the buyer’s financial wellness. There are some common mistakes that many first-time buyers must be careful about.
- Not Having a Home Inspection
That beautiful home may have some faults in it. It might be bad electrical wiring or foundations that are beginning to sink. The roof overhead might be ready to cave in. No buyer should be in such a rush that they will not bother with an inspection. Relying on the word of the seller about internal conditions is risky. A person can realize his or her mistake on the first day they take possession.
- Taking out a Bad Loan
A house purchase is ordinarily the most significant financial decision any consumer makes. The acquisition is funded by a loan taken out from a lending institution. There are all kinds of home mortgages; some are traditional, and some are very risky.
One of the tragedies of the Great Recession of 2008 was the number of people who were trapped in bad mortgages. They did not realize that interest rates could suddenly jump in a balloon mortgage, or that the house payments would consume so much of a personal budget. These sad souls paid the price with foreclosure. A buyer must take out a loan that is affordable in the future as well as the present.
- Not Having a Realtor
Some homebuyers will try to avoid paying a realtor’s commission and personally negotiate the deal. It’s not a smart move because a realtor knows more than a novice about buying a house. Forgetting to negotiate about repair work or utilities will cost thousands of dollars on top of the purchase price.
It is no surprise first-time buyers don’t know much about real estate. Some education about the buying process helps. Countrywide Pre-Paid Legal Services has a self-study program as a Financial Wellness Plan benefit.
“Make Your Move” Removes Doubt
Our “Make Your Move” education enlightens Plan members about real estate nuances. People learn all the terminology and who the principal players are. Mortgage loans are examined so that more sensible choices will be made. The financial security of the Plan member is thus better protected.
We Have Other Financial Wellness Services
Self-study programs are just part of the package. Countrywide has a comprehensive program that will help the first-time homebuyer. We have a national network of certified counselors to assist Plan members. These financial experts will do a budget analysis for Plan members, helping first-time house buyers determine an affordable mortgage.
A buyer ought to have a sizable down payment and cover any fees or closing costs. Asset inventory is part of the Countrywide Financial Wellness benefit. A Plan member is shown his or her existing assets which can be sold for needed cash.
We Have Several Benefit Options
A Countrywide Financial Wellness Plan provides help with college debt, medical bills, and other common challenges to personal finances. We let the client organization choose those benefit options they want. These selections will be part of the Financial Wellness Plan document. Excellent member services will be part of the plan, no matter what choices are made.
Buying a home does not have to be a nightmare. We will help any Plan member who is trying to buy a house of their own. Our other benefits are there to be used when emergencies arise. If you have any questions about the Countrywide benefits program, please feel free to contact us at your earliest convenience.