Many first-time home-buyers are frightened about buying a house. The cost is enormous, and the obligation will last for years. People are going to make some mistakes when it comes to financing and these errors can be expensive in money and time. Several common slip-ups include the following.
- Being Unprepared for Post Purchase Expenses
These bills happen after a person has taken possession of the house. That new home may need repair work on the roof, new electrical wiring might be required, and ordinary appliances such as a new refrigerator or dishwasher are necessary. New owners don’t ordinarily plan for such expenses and are faced with bills they did not initially expect.
- Buying a House That Is Too Expensive
Curb appeal can easily seduce anyone into purchasing a home that is more than he or she can afford. Mortgage payments could force anyone into deciding whether to pay the mortgage or by groceries. If the mortgage payments are not adequately budgeted, there can be missed payments, which can eventually lead to foreclosure.
- A Down Payment That Is Too Small
The down payment must be a good size. A small down payment can result in the buyer paying hundreds or thousands of additional dollars over the life of the mortgage.
- Ignoring the Fees
A low-interest mortgage may have sizable fees attached to them. The Annual Percentage Rate (APR) tells the real cost of a mortgage, but many people don’t look at the APR when buying that first house. They do not realize the origination and closing fees will impact the APR.
The errors are not intentional. These will happen when someone is unfamiliar with real estate financing. If a person has access to practical information, the common mistakes will happen. Countrywide Pre-Paid Legal Services provides a Financial Wellness Program to advise and educate employees about essential financial matters.
Certified Counselors Are the Guides
The Countrywide network of certified counselors gives financial direction to plan members. A sizable down payment may require selling assets like stocks or collectibles. The Countrywide professional will do an asset inventory that identifies salable assets.
The monthly mortgage payment could be a large burden and jeopardize financial wellness. A counselor will perform a budget analysis for any plan member. Cash flow issues are inspected, and alternative means of meeting monthly bills are recommended. The counselor’s advice permits more monthly cash to become available and the mortgage payments are easier on the wallet.
Education That Makes Sense
Mortgages and fees might be difficult topics for some. Our financial wellness self-study course, “Make Your Move,” clarifies the financial language. People will learn about the various actors in real estate and get ideas on house buying that save money and time. The material is easy to understand, and the content offers valuable tips.
Employer Opinions Are Sought
A client’s workforce should be able to use the Countrywide Financial Wellness Plan. Employers know what their employees need. We ask these decision-makers to review our benefit options and select what they want in their plan. We will respect their choices and give high-quality service and administration of the client’s Financial Wellness Plan.
The house is more than a financial investment for many. It is the home where roots are put down and families are raised. Financing the purchase of a house can be done correctly with the right information. Countrywide will supply that knowledge.
You may have an interest in our financial wellness benefits and perhaps have some questions about them. We would welcome the opportunity to speak to you further about our benefits program and how your employees will be served. Please feel free to contact us at your earliest convenience.