5 Mistakes First-Time Home Buyers Should Avoid
Buying your first home is an exciting and stressful venture. You want to find the right home, at the right price, with the right terms and conditions, and to move in at the right time. That's a lot of rights that could potentially go wrong. To help, here are some common mistakes to avoid.
1. Looking at homes before getting pre-approved. Sellers and their Realtors can consider a buyer less serious if they don't already have a mortgage preapproval. If you find the right home you will likely want to make an offer quite quickly. Unfortunately, sellers might not accept a buyers' offer if they haven't already been pre-approved. Also, you'd be greatly disappointed if you discovered you qualify for less than the price range you were shopping in.
2. Going to bank instead of working with a mortgage broker. Banks often won't offer their most competitive rate unless they know you're working with a mortgage broker. Mortgage brokers can shop around to various lenders ensuring you get the best rate. Also, brokers only get paid when they secure a mortgage so they tend to work a lot harder and faster than traditional banks.
3. Not keeping an eye on your credit score. Credit scores can be lower due to history of late payments, debt collections (sometimes unknown), or higher debt. In these situations, a lender might not be able to offer the best rates which could affect 'how much house' you can afford. Check your credit often. You can get a free credit report from www.Equifax.ca or www.Transunion.ca.
4. Buying more house than you can afford. If a lender tells you that you can buy up to a $500,000 home with 5% down it doesn't necessarily mean you should. If you max out your mortgage, you might find yourself 'house poor', making it hard to afford extras in life such as going out for dinner or buying gifts.
5. Skipping the home inspection. Home inspections help you to discover two main things. First, what issues exist that could alter your buying decision? Second, what minor repairs need to be fixed before a potential major repair is needed. Inspections can come at a cost of $500-700 however in light of a house purchase, they are well worth it!
It goes without saying that one of the biggest mistakes a first-time buyer can making is not hiring a professional Realtor. Finding the right home is time consuming. It involves navigating a lot of unknown territory that can lead to costly mistakes. Thankfully with an experienced Realtor working for you, we handle details of your purchase including research, setting up showings, writing an offer, negotiations, sending paperwork to lawyers etc. so that you can sleep more easily. And it's almost always a FREE service to you! It only makes sense to have a Realtor working for you.
If you're thinking about buying or selling and aren't sure if now is the right time? Contact us at the Jason Rustand Team. We'd be happy to meet with you, get a better understanding of your goals and give you our honest feedback on what options are right for you.
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.980.2828, email firstname.lastname@example.org or visit WeSellLeduc.com