3 Traps To Avoid When Buying a House for the First Time, According to Jade Warshaw

Buying a house is a serious commitment for both first-time and repeat buyers. To help her 268,000 Instagram followers avoid common pitfalls, debt elimination expert and financial coach Jade Warshaw highlighted some of the biggest traps you could face when buying in a series of videos.

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Her tips are designed to save buyers time, money and stress when it comes to finding their home sweet home .

Money mistakes the super wealthy never make - that you might be doing now.

Don’t Get Desperate

“I know people say, ‘desperate times call for desperate measures,'” said Warshaw. “That’s a lie! If you get desperate, you’re 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. It’s an asset,” she continued. “You want to build equity, so with 0% down, there’s no equity there. [With] a 40-year mortgage, you’re never going to be out of debt, and you’re going to pay so much in interest. [With] adjustable rate, you just want panic attacks.”

Acknowledging that the real estate market is tight and that both prices and interest rates are relatively high, Warshaw recommended buyers to pay a maximum of 25% of their take-home pay for their house payment, including taxes, insurance and homeowners’ association fees. She also suggested going for 15-year fixed-rate conventional mortgages and working with a realtor who understands your goals.

“Don’t get crazy in this market. Stick to your guns. You want this house to be a blessing and not a burden,” she added.

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Remember That Your Real Estate Agent Is Not Your Financial Advisor

According to Warshaw, it’s important for buyers to recognize that your realtor isn’t looking out for your financial wellbeing. Real estate agents want to make as much as possible on each sale, so it’s up to you to exhibit financial prudence and stick to the plan.

She added that realtors might suggest bridge loans or other poor financial ideas for those who need to sell their current house before buying a new one.

“You know you need to put that money down in order to make your payment make sense,” she said. “Again, your real estate agent is great, but they’re not your financial advisor.”

Don’t Buy One House Before You’ve Sold the Other

“This is a terrible idea,” Warshaw warned. “I get it — you have house fever, you love that new house and you’re thinking everything will line up perfectly. You’ll put your house on the market. It will sell in 30 days, just in time for you to close on your new house, but what if that’s not the case?”

Warshaw also cautions against renting out your current property, which will lead to two payments and two mortgages.

“Please, never do this,” she said. “Instead, make a contingent offer. This way, if your current home doesn’t sell, you’re not on the hook for the new home.”

She continued, “The truth is, there will be some sellers who don’t want to accept your contingency — that’s their problem; don’t make it yours. There’s other houses on the market, and the right house will accept your home-to-sale contingency.”

If you keep Warshaw’s three tips in mind, you’ll be better prepared when it’s time to buy.

This article originally appeared on GOBankingRates.com : 3 Traps To Avoid When Buying a House for the First Time, According to Jade Warshaw