Buying your first home can be a little overwhelming. Sometimes with anything new, mistakes can be made. To help you avoid some common first time home buyer challenges, here are the top ten first time home buyer mistakes to avoid.
Avoid these top 10 first time home buyer mistakes to assure a great home buying experience.
Although you may be able to find a house on your own, there are many aspects to buying a house that a real estate agent will know and be able to help a first time home buyer with. Some examples are preparing the offer, local bylaws that will pertain to you, negotiating a better price, hiring a home inspector and more.
Typically the seller pays the real estate agent commission, so that service is at no cost to you.
Looking at homes before getting a pre approval may mean that you are looking at homes or neighbourhoods outside of your price range. Also, a home inspector may uncover some aspects of the home that are not the right fit for you.
You need to make sure, if doing the renovations yourself, that you have all the tools, time and knowhow to complete the renovations. Also there may be lots of unexpected items that could arise during the renovation process that could have you going over budget. An alternative is to have someone do the renovations for you and if you go this route, being sure that you have quotes before you commit to buying the house and having a detailed home inspection can be of assistance.
Learn more: Tips For Buying a Home to Renovate
Another one of the top 10 first time home buyer mistakes it committing to a home that is more than you can afford. If a lender is able to pre approve you for more than your comfort level, it’s important to go with a price that works for you and your budget. Using up your emergency funds or all your savings to buy a home could create challenges in the future.
The best place to start with finding a real estate agent is to ask friends and family for a referral. Take the time to interview the potential real estate agent and see if they are the right fit for you.
Renovating your home can be quite tempting. However it is important not to rush in. If the renovation means using up your savings, or all your available credit, it may be best to hold off. Also living in your home for a while will help you determine which renovations will be the most important to start with.
Bad neighbours, lots of traffic, an industrial zone nearby and so on can make even the nicest house lose it’s appeal. Spending time in the area that you are looking in first will help you know if it’s right for you.
Also, talking with your new potential neighbours will allow you to know who will be living next to you. Also, this will help you gain insight into the neighbourhood.
Many clients take a lot of time to find the right real estate agent, mortgage broker and best mortgage rates in Ottawa, for example, but the purchase transaction ends with the lawyer and having one you work well with is important.
Having the lowest mortgage rate is important but not if it comes with a mortgage that has larger penalties, poor lender service or less options.
You have worked very hard to purchase your home and it’s your largest investment. Best sure to protect it. Mortgage insurance can give you security and peace of mind and it’s worth researching.
Contact me anytime to help guide you thought the mortgage process and to help you avoid these first time home buyer mistakes.
Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.
Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.