Top Preventable Pitfalls of the Moving Process

If you’re planning to move into a smaller home, you stand to gain so much more than you will lose in space. A lesser mortgage, less to clean, and fewer maintenance tasks are at the top of this list. However, don’t get caught up in the belief that because you are downsizing that there are no big problems that you will have to avoid. Problems like:

Thinking any loan will do.
 
Regardless of your loan type, they all work about the same way. You borrow money, pay it back, and add interest along the way. However, there are many different types of loans, and the subtle differences between them can have a considerable impact on the amount of money you have to pay back. An FHA loan, for example, is a great option if this is your first home purchase. PennyMac Loan Services explains that an FHA purchase loan is easier to qualify for and is a bit more lenient than a conventional mortgage. This loan is ideal if you have a short credit history and less money to put on a down payment. If you’re purchasing in a rural area, ask about a USDA loan.
 
Not getting to know the community.
 
Today, it is possible to buy a home from across the country without ever stepping foot through its doors. But doing so without taking factors other than the home into account is a huge mistake that could have you scrambling to find a new place to call home after your first night. When you find an affordable area, make sure to check the community crime map, school zone, and Walk Score, the latter of which is crucial if you don’t drive.
 
Failure to look at the history of the home.
 
Just as important as the community where you will live is the house that you will call home. If you know that you would like to sell your smaller house later down the road, make sure that it does not have a history that might be considered off-putting to potential future buyers. U.S. News & World Report offers information on how to find out everything from deaths occurring on a property to whether or not the house was ever used as a meth lab.
 
Keeping too much stuff.
 
If your current 2,000+ square foot home is neat, tidy, and clutter-free, you might mistakenly believe that all of your belongings will continue to look the same way in a new house. If you are losing space, this is not true. That large sectional with the matching recliner and coffee table that looks great in your 400-square-foot living room will look out of place in your downsized digs. Make a point to purge your belongings and to know well ahead of time what will fit so that you can make informed decisions on items to keep.
 
Buying on your own.
 
One of the biggest mistakes that many homebuyers make is believing that they can navigate the home buying process without the help of a realtor. While it’s technically possible to buy a house without help, keep in mind that, even if you’re moving to a smaller home, this is still one of the biggest financial decisions you’ll ever make. Your agent can help you make a fair offer, schedule the home inspection, and explain complicated legal jargon buried within the buying agreement.
 
A smaller and less complicated lifestyle does not necessarily mean you won’t encounter bumps along the way. However, most problems are easily avoidable with a bit of patience, research, and assistance from an expert.