Posted: 1 Feb '21

The Top Mistakes Potential Buyers Make in the First-Time Homeowner Buying Process

The Top Mistakes Potential Buyers Make in the First-Time Homeowner Buying Process

The first-time homeowner buying process is exhilarating. It’s fun to dream about your dream home and new life, but sometimes, you may get wound up in the fantasies and make mistakes. Unfortunately, when it comes to decisions as significant as mortgages, mistakes can cost you hundreds of dollars.  

However, there’s no need to panic. If you’re in the first-time homeowner buying process, here are several mistakes you should avoid. Contact us to learn more.

Buying Outside Your Budget  

Browsing through house listings and imagining yourself in beautiful and extravagant spaces can swoop you into more debt than you can handle. This is why you need to manage your expectations for the first-time homeowner buying process. Start by getting pre-approval before you begin house-hunting.  

A mortgage pre-approval weighs your debts, income, assets, and credit report, and tells you how much you qualify for, your mortgage interest rates, and how much you’re likely to pay per month. With a budget in mind, your first-time homeowner buying process can continue with an achievable goal. Being house-broke and living your preferred lifestyle do not always go hand-in-hand.  

Using All Your Savings on the Down Payment  

While you can spend your maximum mortgage amount on your house, you may end up stretching yourself too thin. Remember to consider additional costs such as property taxes, mortgage insurance, home inspections costs, utilities, repairs, upgrades, and closing costs. These additional costs can consume up to 2% of your house price.  

Leaving some cash aside for extra expenses helps you stay within budget and enjoy the first-time homeowner buying process. Contact your Dominion mortgage broker to determine how much you may spend on extra costs. 

Choosing Aesthetics over Function  

It’s easy to fall in love with the appeal, paint, character, and overall appearance of a home, especially if it meets your design needs. While you should find beauty in your home, it’s crucial to dig beyond the visible surfaces.  

Skipping Your Home Inspection 

Some houses may deceive you through cosmetic updates such as renovated kitchens and wooden floors, only for you to discover leaking roofs, cracked foundations, and leaking pipes later on. These updates can run up your housing costs and ruin your first-time homeowner buying process.  

To improve your first-time homeowner buying process, ask questions such as: 

  • What are the statuses of the roof and supporting system?  
  • What are the conditions of the basement and the foundation?  
  • How old are the utility systems? (Water, HVAC, security, and electricity)  

An inspection report is the best way to verify the condition of a house you wish to purchase and give you value for your money. Don’t ruin your first-time homeowner buying process by skipping this step. Discovering problems in the house before finalizing a contract protects you from hazardous and costly elements. No matter how alluring it may be, never skip a home inspection.  

How a Mortgage Broker Can Help  

When buying a home for the first time, seeking an expert’s advice can save you money and time. With Dominion Lending Centres, you can find an experienced mortgage broker to lead you through your first-time homeowner buying process. Contact us today to find your dream home.

Request Mortgage Info