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If you get desperate, youre going to end up doing something that you truly regret.
She noted the rise in adjustable-rate mortgages, zero-rate mortgages and 40-year mortgages and cautioned against all three.
The whole purpose of a mortgage is for you to pay it off and for you to be debt-free.
Its an asset, she continued.
You want to build equity, so with 0% down, theres no equity there.
[With] adjustable rate, you just want panic attacks.
She also suggested going for 15-year fixed-rate conventional mortgages and working with a realtor who understands your goals.
Dont get crazy in this market.
Stick to your guns.
You want this house to be a blessing and not a burden, she added.
You know you better put that money down to make it make your payment make sense, she said.
Again, your real estate agent is great, but theyre not your financial advisor.
Dont Buy One House Before Youve Sold the Other
This is a terrible idea, Warshaw warned.
Youll put your house on the market.
Warshaw also cautions against renting out your current property, which will lead to two payments and two mortgages.
c’mon, never do this, she said.
Instead, make a contingent offer.
This way, if your current home doesnt sell, youre not on the hook for the new home.
Theres other houses on the market, and the right house will accept your home-to-sale contingency.
If you keep Warshaws three tips in mind, youll be better prepared when its time to buy.
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