1. Not getting pre-approved for a mortgage
Make sure to get pre-approved for a loan before putting an offer on a house. What you think you can afford may be different than what a bank is willing to lend you. If you don’t take this step before putting in an offer, you could be wasting not only your agents time, but the seller and seller’s agents time as well. There is always a potential for a bank to lend you less than what you need.
2. Going over your budget
When shopping for a new home, the process can be overwhelming but also very exciting which can lead to spending more than originally planned on your dream home. Spending another 10 to 15 thousand is not something you should do. At the end of the day, life can get in the way whether your income decreases or you end up having to change jobs.
3. Forgetting about added costs
When you purchase a home you are not just replacing a rental payment with a mortgage payment. There are maintenance costs, utilities and property taxes. These are things that are often forgotten about and in the end, after budgeting for absolutely everything, the final payment can end up being well out of your price range.
4. Not working with an experienced professional
Buyers who decide to work with a skilled real estate agent have someone to help them navigate through a sometimes confusing process. Most buyers can benefit from an agents expertise in current market trends. Agents can also help narrow down listings for the best price. Buying a home is an important decision and a professional would be there to guide you through the process from start to finish.
Don’t just settle for a house when there’s most likely much better options available. Make sure to do some research on the neighbourhood, location, specifics of the home and on your finances. Once you have all your ducks lined up, you can make an informed decision and choose the right property.