Top 10 Mistakes New Home Buyers Make
Get pre-approved before house hunting
Talk to a mortgage broker before you begin looking for a house. It lets everyone know you are serious about buying a home.
Think long-term value
Buying a house is the single largest investment you will ever make. Think about resale value, look for good locations, and how feasible it is to add features later.
Research the neighbourhood
Walk around the block and see how other people live. Introduce yourself to the neighours and ask what it’s like to live in the neighbourhood.
Research “bargain” properties like foreclosures
Get estimates on repairs or renovations. Get answers as to why the property was given up by the former owners.
Buy within your budget
It’s easy to overspend especially when everyone seems to be encouraging you. An “extra $2 a day” may require sacrificing entertainment or other lifestyle choices.
Falling in love at first sight
A certain amount of pragmatism is required when house hunting. It’s easy to fall for the house that reminds you of Auntie’s or be swayed by the smell of baking bread. Be objective.
Get a home inspection
Never assume that because the home looks tidy and organized that all is well. All homes should be professionally inspected. Even condos and new homes may have issues with common areas or fit-and-finish that you need to be aware of.
Read the fine print
Ask to see the mortgage documents and other transaction paperwork well before you sign anything so there are no surprises.
Always have options
Never sign an offer that doesn’t allow you to back out of the deal because you cannot get financing or the home inspection turns up something expensive. Your real estate agent will add clauses to the offer that will give you the option to cancel if everything isn’t to your liking.