Here's a piece from the Motley Fool that lists big money blunders to avoid. Today we'll be looking at what the Fool thinks is the biggest mistake people make when buying a home:
House buying is a very, very emotional thing. That is also a problem with it. We don't go into house buying logically and as an investment. We listen to our mortgage broker, real estate broker, and maybe even our own gut. We frequently will see that there is a huge difference between the definition of affordable and what you can qualify for when it comes to a mortgage.
Just remember the adage, "Everybody wants to part you from your money." [Mortgage brokers want] to get you into as much house as you can afford, according to their qualifications. As long as they have got a lender willing to give you the money, all they are doing is brokering the loan. So the biggest one they give you or get for you, regardless of whether it is in your best interest, the more money they make. Same thing with your realtor.
Yep, I couldn't agree more.
As I stated yesterday, don't let a bank tell you how much to borrow for a home. Decide for yourself.
Also, check out my recommended formula for buying a house.
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