So you’ve finally decided to buy your first home. We know how exciting this time can be. It’s not akin to buying a new pair of jeans. On the contrary, it’s one of the most significant financial transactions of your lifetime.
You are jumping from renter to homeowner! In the flurry of excitement, you might put yourself in a less idyllic position. Property newbies are prone to make these common mistakes as they navigate the home-buying journey. We don’t want you to end up doing this!
Mistake #1: Not Getting Pre-Approved for A Mortgage
Ask anyone in the industry – Real Estate Agents, Mortgage Brokers, Inspectors, Real Estate Lawyers. If they are experienced and knowledgeable, they will tell you the first thing you should do in property search is get pre-approved for a mortgage.
Your mortgage broker will tell you the maximum amount you can spend on your home, this way you’ll have a better picture of the price range in your house hunting.
Mistake #2: Not Budgeting for Closing Costs
Closing costs are often overlooked in the house-hunting budget. Don’t let this important part of the deal take you by surprise.
Keep that in mind and set aside a budget in addition to your down payment. Note that your mortgage lender won’t cover these costs, thus it’s important for you to keep the closing costs in mind.
What’s involved in closing costs? Take note of fees for home inspection, legal fees, land transfer taxes, insurance, and registration fees are all part of closing costs.
Mistake #3: Buying a House based on Appearance
If you’ve started your home-buying process, you know this feeling. The door opens and you’re immediately love-struck. The immaculate floors, granite countertops, open kitchen design… it’s speaking to you from every appliance from every corner!
But we want to stop you here. Please don’t make this big purchase on this basis alone. Real estate agents are trained to stage a home. They can design and decorate a space based on your preferences. By all means, enjoy the ambiance, but don’t get distracted by these “wow” factors.
Focus on the bones of the home. Check out the sturdiness and usability of the windows and doors. Find out if the roof and other structural elements are secure. And don’t fall victim to this next mistake…
Mistake #4: Skipping the Home Inspection
When the housing market is sizzling hot, it’s too tempting to skip the home inspection, especially when you’re competing with other buyers. If you don’t act now, you’ll lose this dream home!
That urgency might just lead you to your nightmare. That’s why conducting a home inspection is non-negotiable, especially if you’re eyeing an older house. Consider obtaining a home inspection before you submit an offer if you cannot include an inspection condition in your offer. A home inspector that will provide you with a comprehensive report to keep the house in tip-top shape.
Mistakes are part of the journey, but some are too costly to make. In buying a home, it’s crucial to make the right moves. You don’t have to be alone in the homeownership journey. Build a team of experienced professionals – a real estate agent, a mortgage broker, and a real estate lawyer. This will make your first property-buying experience an especially happy one.