It’s a new year, and I know some of you are looking to make your first home purchase. I’d firstly like to commend you for making the decision to invest in your future! As I have mentioned in previous blog posts, 2019 will bring some excellent home buying opportunities as our market is in a period of correction. To make sure that you are making the best decision for your family, I wanted to highlight 5 common mistakes made by first time home buyers.
Not going out and getting a pre-approval
Searching for a property before getting a pre-approval is like going shopping with a credit card and not knowing the limit. So before you set foot into a home, make sure that you sit down with a trusted mortgage specialist to find out exactly what you can afford. It is important to shop the rates, do your research and find a trusted representative to work with. They will look at your bank statements, debt load, notice of assessments, income, investments, and so on.
Think practical; not emotional
This is probably going to be one of the biggest purchases you’ll make in your lifetime. Therefore, you want to make sure you are making a practical, educated decision about where and when to buy your first home. Ensure that you are purchasing in a good neighbourhood that easily accessible with amenities nearby. Remember that your first home may not be your forever home, so you want to think resale value above all else.
Make sure that you are aware of the conditions that you are including in your offer. They are your protection should the property or terms not meet your standard. This is where working with a realtor is essential; they will advise you what to include/exclude to make sure you’re covered.
Hire your own real estate agent
Remember 99.9% of real estate transactions the seller pays the realtors commission. Therefore, I always advise hiring your own agent who has your sole interests in mind. They will act as a second set of eyes to highlight the pro’s and con’s of properties, which will be valuable in the decision-making process. At the end of the day, its someone working for you.
Don’t forget to factor in closing costs
You’re at the end of your first home buying experience, and the keys are almost yours. At this point, a lot of people forget the additional costs of closing a house. There are lawyer fees, deposit to utility companies, movers, property taxes may be applicable, etc. Be sure to have a buffer within your budget to factor in these costs, as they can be substantial.