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When it comes to making mistakes when buying a home, we can all keep these in mind. Bankrate.com and RIS media point out patterns we follow as we  enter a different phase of our lives.

In Our 20s

We are focused on getting the lowest possible monthly payment. This leads us to an Adjustable Rate Mortgage. The initial interest rate, which determines the monthly payment, is low! Unfortunately, this adjusts upward, typically in just 6 months. Because we now in an economy where interest rates will go up for the foreseeable future, borrowers will be facing higher monthly payments every 6 months. An alternative to the Adjustable Rate Mortgage is a fixed rate loan. We can usi down payment assistance if necessary to get us into a home while rates remain near their recent low point.

In Our 30s

Buying for the moment is the most common mistake at this stage. We may feel that we have enough income and want to continue to enjoy the stimulating lifestyle of living downtown. This may workout in the short run. Then we meet someone and decide to have a family and quickly find our high-rise 1 bedroom condo too restricting. We need to seriously consider what is important in the long run before buying.

In Our 40s and 50s

At this stage in life, we tend to want more and are willing to pay for it. Unfortunately, even with a fixed rate mortgage, it is easy to miscalculate. We end up with more payment than we have funds for after we pay all our other bills. Careful planning that takes into account not just our current spending, but also future needs can help us avoid this quandary. For example, the car may be paid off but is it wise to think it will last forever? Do we want to help our child(ren) go to college? Will we be able to save for retirement?

In Our 60s

While retired and traveling, we fall in love with a particular location. We immediately set about selling the current home and moving to that idyllic spot. In our haste, we overlook the cost of living there. The cost of the move. What the rest of the year is like (e.g. is this location overrun with tourist during a particular part of the year?). Will we be close enough to see the grandchildren once the kids have them? These and many more things need to be discussed between the family to avoid costly mistakes.

Avoid costly mistakes when buying a home at any of these stages. I can help you identify and sort through your options. Call/text me at 760 622 5087 or email me at [email protected] I offer services for every stage of life, including options for you to stay right where you are.