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September 16, 2025

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I remember when my nephew bought his first house. He was so excited, but within months he started realizing just how much went into owning a home beyond the mortgage. The water heater, the landscaping, unexpected repairs all add up fast.

It got me thinking about the mistakes many first-time buyers make without even realizing it. Whether you're helping a young adult navigate the market or looking to buy your first home yourself, knowing these common pitfalls can save you thousands.

Let's look at five costly homebuying mistakes and how to avoid them.

Be Well,
Anisa

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5 Costly Homebuying Mistakes

1. Overpaying on Interest Rates
One of the biggest regrets I've seen is locking in a high mortgage rate. Don't just accept the first number a lender gives you. Shop around, compare quotes, and explore loan strategies such as adjustable-rate mortgages, points, or 2/1 buydowns. Those first few years are heavy on interest, so even small savings can add up fast.

2. Not Knowing the Homebuying Process
Buying a house is usually the largest financial transaction of your life. Yet many skip learning the basics. Interview several agents, read reviews, and find someone who knows your local market inside and out. A skilled agent makes a huge difference.

3. Rushing Into the Wrong House
I've seen friends compromise on neighborhoods or choose fixer-uppers that turn into money pits. Make a must-have versus nice-to-have list. Check schools, lot sizes, and contractor estimates. Drive through the area at different times to get a real feel for it.

4. Waiting for the Perfect Market
There is no perfect timing. Focus on your personal readiness including a stable job, savings, and plans to stay put for at least five years. Homes fluctuate in value, but personal preparedness is what really protects your wallet.

5. Forgetting About Ongoing Expenses
Owning a home is not just mortgage, taxes, and insurance. Budget 1 percent to 3 percent of your home's value annually for maintenance. That covers things like water heaters, gutters, roof repairs, and termite contracts. A small yearly fund avoids huge surprises.

Quiz: Are You Ready to Buy a Home?

1. Do you have at least three to six months of living expenses saved?

2. Have you researched neighborhoods, schools, and local amenities?

3. Are you prepared to handle unexpected repairs without stress?

If you answered no to any of these, it may be worth pausing before jumping into a purchase.

You Said It, We Saved It

G 5doll_HighFiveIn response to the 8/26 edition
"The 72-hour rule has been a game changer for me. I have already skipped three online impulse buys!" – Karen S.

"I always ask my kids: 'Need or want?' It works for me too!" – David R.

Reply back to me with any comments on today's or past issues.

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