Traps all home buyers should avoid

Don't mistake a purchase as your last chance

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At the beginning of a new year, it's natural to make resolutions. For instance, you may have been putting off buying a home. Now you've resolved to buy before interest rates rise and you're priced out of the market. Before forging ahead, consider the following tips and traps. The first trap to avoid is buying a home because you think this is your last chance. It may be an excellent time for you to buy, but you shouldn't base your decision on fear. Certainly, if interest rates go up significantly you may not be able to qualify for as big a mortgage. But, higher interest could also have an adverse effect on the home sale market, depress prices and create better buying opportunities for buyers. Following this line of reasoning, you might decide to wait to buy until you see what the market will do in 2005. After all, if you buy now, you could end up paying too much if rates rise and the market softens. Herein lies the second trap: waiting for a better time to buy. You could wait to buy ...