Not applying for a mortgage before looking for a home
So you see a home you love, then you apply for a mortgage, and that home you loved just doesn’t work for your budget. How disappointing! This is a common mistake first time homebuyers make. If you want to avoid this and be as organized as possible, apply for a mortgage and meet with a mortgage broker before-hand. This way, you’ll know exactly what to look for and where because you will know what you can feasibly afford.
Not checking out multiple options for lending
This also a very common mistake. Make sure you don’t just go with the first lender that offers you a mortgage. Another lender might have a better deal for you that fits better with your financial situation and what you’re looking for. Shop around, do some comparisons, and make sure you have the best deal you can find.
Buying a home, you can’t afford
Sometimes new home owners can get too excited about the home shopping process, that they forget to think about the practicalities of buying a home that’s out of their budget. Even if you’re approved for a loan that fits with that expensive home you love, make sure it works with your budget and finances. You don’t want to get into trouble and potentially lose your home if you experience financial issues in the future. Consult with professionals to make sure you are buying a home you can afford now, and in the long run.
Not considering the neighbourhood
Okay so you think you’ve found your perfect home: it’s in your budget, it’s everything you’re looking for in a home, it’s aesthetically pleasing, etc. But, is it in a good neighbourhood? Is the home a reasonable distance from your work or things you need? Are you planning on starting a family soon, or already have a family? Then you will want to consider the neighbourhood – especially if it’s in a safe neighbourhood, in a good school district, and a reasonable distance from daily essentials. The way the house looks won’t be important to you in the future if you start having issues because of the neighbourhood you’re in.
Thinking you will find the absolute ‘perfect home’
If you’re looking for the ‘perfect home,’ you’re really going to be narrowing your options. Perfect homes simply just don’t exist. If you go into the home shopping process with an open mind, you might be surprised on what you fall in love with. Remember, little things you don’t like can always be fixed with a bit of hard work!