5 Common Home Buying Mistakes First Time Home Buyers Make
5 Common Home Buying Mistakes To Avoid
No Mortgage Pre-Approval
Are you trying to shop without a pre approval? The pre approval process is really the 1st step to buying a home. A common home buying mistake is not getting your pre-approval done before you start home shopping. How do we know what you can afford otherwise? The pre approval provides confidence when placing an offer, gives the buyer certainty with the type of home they can afford and will generally guide the buyer and realtor to areas within the price range.
Taking on New Debt
A common home buying mistake is taking on New Debt right before you are about to buy a home. Everything you do from the pre approval process to before the home closes will have an impact on your purchase and can essentially jepardise your debt to service ratio.. It is important NOT to take on any New Debt such as buying a new vehicle or deciding to co sign for someone else.
Not Hiring A Buyers Agent
A common home mistake is Not Signing an exclusive agreement with a Buyers Agent – Many Buyers think that it is in their best interest to work with the Sellers Agent. There is a misconception that they will get a cheaper price for the home if they do so. This is false and very dangerous for the new buyer. The seller’s agent is looking out for the sellers best interest and it is their sole priority and interest to get the seller the highest purchase price. It costs a buyer $0.00 to work with a professional who will protect them and negotiate on THEIR behalf.
Use An Experienced Mortgage Broker
Fixating on what mortgage broker will get the cheapest rate – Rates are at an all time low and almost everyone can get the same deal however not all mortgage brokers are created equally. An experienced advisor will get you the best mortgage and TERMS depending on your qualifications and needs.
Managing Your Expectations
Champagne taste on a beer budget – Often buyers miss out on great opportunities because they can’t see past small details such as minor cosmetic fixes or the home might not be their 1st choice for the area. Buyers end up pushing themselves out of the market because they are too picky. Buyers should always have standards but what they should remember is that their first home is not always going to be their forever home. If the home offers 75%-80% of your must haves then its likely a great purchase. Get your foot in the door and start building. The longer you wait the higher prices go up ⬆️
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