First-Time Home-Buyer Mistakes

As a first time home buyer, purchasing your first home can be an exciting and overwhelming thing. It makes you feel like you can achieve your dream. However, to achieve that dream, you have to traverse a puzzle of procedures and work with a few players that you will encounter in the game such as agents, lenders, and sellers. It doesn’t matter if you have just started to save or already picked a house-don’t worry, we can help you get the key to your dream home.

A first time home buyer makes mistakes almost all the time. Some mistakes that are made by people buying a home for the first time include

1. Failure to hire a real estate agent
   Most of the home buyers tend to think that realtors are not necessary. Getting an experienced agent by your side is a significant thing. Realtors are paid by the seller’s commission. Not by you.

2. Not looking into all loan options
   Currently, there are many types of home loan programs. Seeking advice from more people gives you more information on how to select the right mortgage.

3. Having a fixed budget
   There is a big difference between owning a home and renting one. In a home, items need to be fixed regularly when they break or get damaged. Always make sure that you save some extra cash just in case you need it.

4. Skipping home inspection
   Many first time home buyers do this to cut cost forgetting that defects found later can cost them a lot of money. You should hire a home inspector and follow them during the inspections.

5. Purchasing very expensive homes
   This is one of the common mistakes that are made by first time home buyers. The affordability of a home you want to buy depends on your debt to income ratio. The maximum rate is 41% for most mortgage payments but the perfect one is 36%. Apart from the mortgage payments, there are other expenses that come with the purchase. For instance, property taxes, landscaping and Homeowners Association (HOA) dues.

Steps to buying a home

• Do your research

• Know your budget

• Get a duplicate of your credit card

• Correct any mistakes

• Get a pre-qualification letter

• Hire the right realtor

• Submit an offer

• Get a home inspection

• Choose a loan

• Get the home assessed

• Co-ordinate the paperwork

• Close the sale

Another option is to hire a mortgage broker who will help you in conducting the research and do comparison shopping. They usually have access to lenders, products, and rates. If your credit score is poor, a broker can help you by connecting you with a lender that will work with you. Brokers are also important because they help you get your paperwork together.

Please contact us today via our website or call us at 866-307-0747 to learn more about mortgage types, options and mortgage tools. Mortgages Mortgages are Canada’s mortgage experts and will help you on your way to your dream home.