You’ve been saving and budgeting for years and it’s finally time to buy your own home! Buying a home is an incredibly exciting journey–after all, it’s where you’ll spend countless days with your family and build treasured memories. Unfortunately, a lot of stress can come with the purchase of a home.
From navigating an ever-shifting market to securing financing and ensuring all your paperwork goes through, buying a home can be a stressful endeavour. That’s why we’ve compiled a list of mistakes to avoid as a first-time homebuyer, so that the purchase of your first home is as smooth and stress-free as possible.
Not Getting Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is advantageous for a number of reasons. First of all, it will clearly define your budget and what price range you should be looking in. Secondly, it makes you more appealing to sellers, as they know your offer is backed financially.
Check out our articles on shopping for mortgage quotes and what happens if you get denied a mortgage after pre-approval.
Making sure your price point is clear is especially important; imagine you’re house hunting before getting pre-approved and find a house that you absolutely love, only to later realize it’s way out of your budget. You may even find yourself trying to stretch your budget for a home that you particularly love, which leads us into the next mistake:
Letting Emotions Drive You
Try to keep an objective outlook on the homes you see. Ask yourself questions like, “is the home priced well for the area?” and “does this have everything we’re seeking?”.
Ignoring Additional Costs
There’s a bigger cost to buying a home than the list price. It’s important to figure out your down payment and monthly mortgage payment, but you’ll also need consider additional costs such as closing costs (which can range from 2-5% of the home’s purchase price), property taxes, home insurance, and ongoing maintenance costs. All these additional costs can end up pushing you over budget, so be sure to account for them before putting in any offers.Skipping the Home Inspection
If you’re looking to buy in a very competitive market, skipping out on the home inspection can give your offer an edge. However, this can be a risky move that ends up costing you more in the long run. Having a home inspection done ensures that the home you’re about to buy will be solid and sturdy in the long run, or, it will reveal problems that need to be addressed.
Uncovering these issues in the inspection can save you from buying a home that will end up costing you too much, or it can give you negotiating power before you close the deal.
Not Thinking Long-Term
For many, the home you buy will be where you live for decades. This means that it’s important to consider how your home will fit your life in the long-run and not just in this moment.For example, if you’re planning to start a family, you’ll need to consider not just space for your children but amenities. Are there good schools nearby? Access to healthcare? Grocery stores? All these factors should be taken into consideration before pulling the trigger on a home.
Trying to Do It Alone
There are a myriad of things to consider when buying a home, and doing it for the first time can be a confusing process. Using an experienced real estate agent will help make the process a lot smoother–not just when previewing homes, but also when it comes down to negotiating. A good agent is also well-connected and can give you contact information for the other steps of the home-buying process, such as finding an inspector.Buying your first home is a huge milestone, and one that is definitely worth celebrating! Ensuring you don’t make the most common first-time buyer mistakes can ensure that you spend more time enjoying your home instead of stressing over it.
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