Posted on February 27, 2010 by Carole Somer

Failure to investigate the neighborhood. You will live not only in the house, but in the neighborhood as well and it’s more difficult to move from a house you own than from an apartment you rent. Learn about your potential neighbors as well as about schools, parks etc. Walk around the neighborhood some evening and see how friendly the people are. Talk with them and see if they seem to be the kind of people you want to live around. Ask about problems such as bullies or drug use in the area. Drive by on a weekend night and see if there are wild parties going on.

Inadequate financial planning. Be certain you can really afford all the costs, plus any emergencies that come up. Remember, you not only have to pay the mortgage but insurance, property taxes, utilities etc.

Ask to see a record of utility and property tax payments from the previous owner to get an idea of how much this will cost. If the owner refuses, be suspicious. You will own the house with all its problems, including any repairs needed.

Include disaster insurance in your plan, standard homeowners’ policies don’t cover things like earthquakes, flooding etc. If an earthquake destroys your home you are still liable for mortgage payments, so be prepared.

Buying a home does add complexity to your life since you become responsible for many things the landlord does for apartment dwellers.

However it has many advantages, both financially and in terms of satisfaction. Plan carefully and a rewarding experience awaits you.