Things to Avoid When Buying Your First Home
The idea of owning a home (a place that's yours, where your kids can grow up and make lifelong memories) is alluring to most people. This is why buying your first home is one of the most exciting and important investments of your life. Contact us today for help starting your home buying process.
Buying your first home comes with a tremendous sense of achievement. More importantly, it is a long-term investment for your family. This is why it is vital to get value for the money you pay.
The home buying process is long and comes with several challenges, which can make it very stressful. As a result, many first time home buyers make grave mistakes as they skip critical steps in the process, such as:
1. Not Setting a Budget
Buying a home is a significant financial investment that will commit a portion of your income for years to come. Therefore, the key to success when buying your first home is creating a sound financial plan.
Begin by determining what type of house you want and how much you can afford to spend upfront and monthly on the purchase. As you determine how much you can afford, consider your ability to meet future financial obligations. By taking all these factors into account, you will be able to set a budget suitable for your present and future needs.
2. Failing to Seek Pre-Approval
It's very disheartening for homebuyers when they think they've found their dream house, only for mortgage lenders to give you approval for less than what the house is worth. This is why it is wise to get pre-approved for a mortgage before you begin house hunting.
By doing so, you will know the specific amount you qualify for, thus avoid looking at houses beyond your range. However, make sure to stick to the budget you set even if your mortgage lender pre-approves you for more.
3. Not Working with a Mortgage Broker
A mortgage broker has access to mortgage products from a variety of banks and lenders. Their job is to find you a mortgage with the best rate and terms for your needs and you don’t even pay them! Working with a broker prevents you from choosing a mortgage with a high rate or having to shop around yourself. When buying your first home, you won’t want to miss out on the mortgage broker experience. Not only will you get the best mortgage available to you, but you will get expert advice and guidance from years of experience in the industry.
3. Shopping Alone
Though it's possible to do a house search on your own, working with a real estate agent has its perks! If you don’t have your own realtor, you will be shown houses by the listing agent. These agents have the seller’s interests at heart, not yours. Your realtor is on your team! They also get the majority of their new business from referrals from previous clients, so they are going to do everything they can to give you a good experience.
It is important to know that real estate agents are paid by the seller, not by the buyer so they are an absolutely free resource to you.
5. Putting All Your Focus on the House
As much as you’re buying a house, you are also investing in the neighborhood and your future. Even if the house has all the features you like and seems perfect, it won’t be suitable if it’s in a neighborhood that does not suit your lifestyle or if you cannot afford the payments.
Get Started on the Path to Buying Your First Home
A mortgage is a long-term financial commitment. As such, it is important to get a lender with the best rate and terms. This is often easier said than done.
This is where Dominion Lending Centers Mortgage Mentors Comes in. We give you access to a plethora of mortgage products and facilitate mortgages all over Canada. Contact us today to make the process of buying your first home a breeze.
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