5 Mistakes First-Time Homebuyers Make

First-time homebuyers are eager to get out of their parent’s homes or stop renting and purchase their first home. The problem with eagerness is that it can easily lead to mistakes and these mistakes can be costly.

Not getting a home inspection

You’ve found a home in Colllingwood you love and you aren’t going to believe anyone if they tell you something is wrong with it. That mindset could cost you thousands of dollars if there is actually a major problem with the home. One of the biggest mistakes a new homebuyer can make is to not do an inspection. Even if the home is fairly new, there can be major issues with it and an inspector can find these out so you are both aware and prepared. You could go back to the seller and ask for the costs of the repair or you can decide to walk away. But, once you’ve moved in, there is no turning back: the problems are now yours. Get a home inspection before your finalize the sale.

Not getting pre-approved

You might believe you make enough money and that you’ve got great credit, so you’ll easily be approved for a mortgage. But, by not getting pre-approved before even stepping into that first showing, you are just stalling the inevitable. A pre-approval will let you know exactly how much you can afford and at what interest rate. If your credit isn’t great, your interest rates could be higher or you might not get approved at all. By knowing this information before you start your house shopping, you’ll be in a better position to make an offer the day you see a home you love.

Not budgeting for the full cost

Many first-time homebuyers have unrealistic notions of what a first home will cost. Besides your down payment of at least 5%, you’ll need to budget another 1% to 3% for closing costs. On top of this, you need to be aware of what the costs of property taxes, utilities, moving costs and home maintenance will cost you. If you don’t have 20% down, you will require CMHC mortgage loan insurance, which while added to your mortgage can still be very costly.

Using their emotions

One of the biggest mistakes you can make while buying a home is using your emotions. Sure, you want to love your home, but buying a home should be a practical decision. When looking for a new home, ensure that it will suit your lifestyle now and for years to come. Don’t just buy a home because everyone else is and you want a spot of your own, no matter what the cost. Figure out what your costs are and if now is truly the right time for you to buy. Similarly, when you are buying a home, don’t just fall in love with the granite countertops while dismissing the wet-smelling basement.

Not reading the details

You’ll feel like you are signing your life away when you buy your first home as there are so many documents to sign. Ensure that you’ve read everything over very carefully so you aren’t locking yourself into a situation you can’t get out of. This includes your offer, counter-offer, mortgage papers and more.

There are many great homes for sale in Collingwood and the Blue Mountains. With my experience ill be able to show you the perfect home for you and not get you into a money pit.

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