Are you planning to buy a new home for the first time? CONGRATULATIONS! It is one of the most exciting things to do, but truth be told, it can also be time-consuming and complex. No need to worry, though, because we are here to let you in on the common mistakes you should avoid when buying a home for the first time.
Here they are:
Overlooking Extra Costs
Your mortgage is not the only cost to consider when purchasing a new home. You also need to prepare to cover closing costs and these include loan origination fees as well as appraisal and home inspection costs. Do not forget the moving costs and other necessary repairs you need to make when you take possession of the new home.
The bottom line is, make sure you have the budget to cover several thousand dollars of extra expenses that come with buying a new home.
No Mortgage Pre-Approval
This is the first thing you should do – even before you start looking at houses. You should first get pre-approved for a mortgage. Why, you ask? First, you will know the price range for a home that you can realistically purchase. Second, many realtors would not even let you put a bid on a house until you have accomplished this step.
Being “pre-qualified” is different from being “pre-approved”. Pre-qualification is a simpler and quicker process while pre-approval involves more time, energy and paperwork. However, pre-approval carries more weight and it might also make your offer stand out should the seller receives multiple offers.
Being Overly Emotional
You can easily fall in love with a home at first sight but you should not let that initial emotional reaction cloud your judgment. Before settling on a house, ask yourself if the entire home is the right fit for you. Consider other aspects such as the neighbourhood, the layout, and the renovations that will come with it.
Being Overly Critical
On the flip side, you also do not want to nitpick too much and focus on minor aesthetic issues that can be fixed easily. What you should be looking at is the basic bones of the home. Remember, minor details can always be changed.
No Home Inspection
Not having a home inspection is just like purchasing a money trap without your knowing. A home inspection can make a huge difference as it shines a light on potentially pricey (dangerous, even) issues with a home and it can save you from getting in over your head.
If you need expert advices on buying a new home for the first time, setup an appointment with Daniel and Bonnie Wan today.