First-Time Homebuyer Mistakes
To ensure a smooth and successful experience, there are a few common first-time homebuyer mistakes to avoid:
1. Not Using a Real Estate Agent
While you might be able to house hunt on your own, there are many aspects of buying real estate that can be confusing to first-time shoppers. A real estate agent provides an essential service that you can rely on for negotiating offers, organizing inspections and other details. A good realtors experience is valuable and can help guide you through the process. In addition, whatever money you might save on commissions could easily be spent on a botched offer or overlooked repairs that could be avoided with the help of an agent.
2. Not Using the RIGHT Real Estate Agent
Not using a real estate agent has its issues, but so cannot using the RIGHT real estate agent. You don’t want to be halfway through your home search and then realize your real estate agent isn’t right for you. To avoid this, it helps to get a referral from a friend. If you don’t have any friends who recently purchased, take the time to ask around. Mortgage professionals are great resources to help you build your entire home buying A-Team! Also be sure to speak with your potential choices before you commit.
3. Getting Swept Away
While love at first sight is a good thing, it is always best to err on the side of caution when purchasing a new home. As one of the largest purchases of your life, it is ideal to keep an open mind when house hunting to ensure you are not jumping in too fast, going over budget or ignoring potential pitfalls.
4. Going Over Budget
When it comes to house hunting, budget is everything! As much as you might love the idea of that extra bedroom or a popular neighborhood, it is in the best interest of your future not to go over your predetermined budget. You don’t want to sacrifice your retirement savings or emergency fund and overextending yourself could put your investments - including your home - on the line. Click here to download the My Mortgage Toolbox app (or find it on Google Play and the iStore) today to help you plan your mortgage! From determining your affordability, mortgage payments, income required to qualify and more, our app has it all!
5. Fixating on Lowest Interest Rate
While a low interest rate has its perks and can be important, it should not come at the expense of heavy penalties or restrictions. When it comes to a mortgage everything from terms to penalty calculations to interest rates matter. Ideally, you want to choose a mortgage product that has the best overall contract to serve your needs - now and in the future. To ensure you are making the best decision, talk to a Dominion Lending Centres mortgage professional about all your options today.