5 Ways A House Can Suck Your Money In Like A Black Hole

A house is like a black hole because once it sucks money in it won’t come back out. Even if you walk away with a profit over the lifetime of owning your home you’ll still need to throw money into it over the years. Sometimes it can catch people out and they can suffer serious financial problems. Owning your own home shouldn’t be stressful, so let’s look at a few ways it could make your money disappear.

A blank application form

When you’re filling out your mortgage application form you shouldn’t leave anything blank because you might end up with a nasty surprise. Some loan officers are maybe a little too keen to see you get approved and they could lie on your form. This will come back to bite you if anyone finds out and you can’t turn around and say it wasn’t your fault. Obviously you shouldn’t lie on your own application either, but I’m sure you wouldn’t because it’s a very silly thing to do.

The right real estate agent

Real estate agents are not machines running on the same software. Some will be great at their job, but there are also a huge number of them who should maybe be working in a fast food restaurant. If you decide to go with the wrong one it will take you forever you sell your home and you could also lose out on a lot of money. It’s always better to ask for recommendations from friends who have successfully sold their homes because you’ll know their agents were competent.

Don’t pay everything upfront

Eventually you’ll want to hire someone to carry out work on your home. Don’t go with anyone who asks for all the money upfront. It’s okay for them to ask for a third of the money upfront, but any more and you know something is wrong. They could disappear into the sunset after the check has been cashed and you wouldn’t see them again. It could also mean their business is in trouble if they can’t afford to pay for the materials you need on their own, so I’d be careful even if they live locally.

Know your contractor

If you want to protect yourself as much as possible you shouldn’t hire a contractor unless you know them. You don’t have to be their friend, but they should have carried out work before for someone you trust. Not only will it mean they don’t run away with your money, but you’ll also know they’re good at their job. Anyone with a big smile can charm you into thinking they’re a skilled professional, but it doesn’t count for anything if your home is falling apart by the time they leave.

Wait a few years to buy

Just because you want a home right now it doesn’t mean you should buy one. Do you think they’ll offer you a big enough mortgage? If you won’t be able to buy a big enough home you could wait a few years until you’ve had a few pay rises at work. It would also mean you could save up a bigger deposit which would lower your mortgage repayments. I know it’s hard to wait once you finally want to buy your own home, but you should sit down and think about what will save you money over the long-term.

Learn to be smart

When you’re dealing with something as expensive as a home you’ve got to be careful. One mistake could cost you a lot, so it’s better to know all your options before doing anything. Now that you’re aware of some common pitfalls you can try your hardest to avoid them in the future.

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Ian Andrews, the contributor of this article, is a freelance blogger, currently writing for First World Mortgage, Connecticut home loan providers. When Ian is not writing, he loves to play baseball with his friends on weekends.

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