Common Mistakes First Time Home Buyers Make
The excitement of finally fulfilling the long-desired aim of becoming a homeowner is one that fills you with euphoria. Unfortunately, this euphoria can quickly evaporate once you’re struck by the reality that there’s so much you may not be aware of. This lack of awareness can lead you to commit errors that prove to be costly.
As your trusted mortgage broker with Dominion Lending Centres, I, Raj Gera, am here to help you steer clear of any error you can make in the build-up to purchasing your first home. To ensure that you are aware of the little details linked to buying a home, I’ve listed 4 of the most common mistakes first time home buyers make and how to avoid them.
1. Forgetting to budget for closing costs
Most first-time buyers know about the down payment, but fail to realize that there are several costs associated with closing on a home. These can be substantial and should not be overlooked. They include: Legal and Notary Fees, Property Transfer Tax (though, as a First Time Home Buyer, you might be exempt from this cost), and Home Inspection fees.
There can also be other costs included depending on the type of mortgage and lender you work with (ex. Insurance premiums, broker/lender fees). Check with your broker and get an estimate of what the cost will be once you have your pre-approval completed.
2. Buying a home on looks alone
It can be easy to fall in love with a home the minute you walk into it. Updated kitchen + bathrooms, beautifully redone flooring, new appliances…what’s not to like? But before putting in an offer on the home, be sure to look past the cosmetic upgrades. Ask questions such as: When was the roof last done? When were the windows last updated? How old is the furnace and water heater? How old is the house itself? And what upgrades have been done to electrical, plumbing, etc.?
All of these things are necessary pieces to a home and are quite expensive to finance, especially as a first-time buyer. Look for a home that has solid, good bones. Cosmetic upgrades can be made later and are far less of a headache than these bigger upgrades.
3. Skipping the home inspection
In a red-hot housing market, a new trend is for homebuyers to skip the home inspection. This is one thing we recommend you do not skip! A home inspection can turn up so many unforeseen problems such as water damage, foundational cracks, and other potential problems that would be expensive to have to repair down the road. The inspection report will provide you a handy checklist of all the things you should do to make sure your home is in great shape.
4. Not using a broker
We compare prices for everything: Cars, TV’s, Clothing… even groceries. So, it makes sense to shop around for your mortgage too! If you are relying solely on your bank to provide you with the best rate, you may be missing out on great opportunities that a Dominion Lending Centres mortgage broker can offer you. They can work with you and multiple lenders to find the sharpest rate and the best product for your lifestyle.
To get the best mortgage and home purchasing experience, reach out to Raj Gera at the Dominion Lending Centres. I service clients across Oakville, Hamilton, Burlington, Toronto, Grimsby, Stoney Creek, St. Catharines, Brantford, Niagara Falls, Kitchener, Waterloo, Milton, Mississauga, and the Greater Toronto Area.
I have access to more than two hundred lenders, including banks and credit unions, and offer diverse mortgages understanding that people have different mortgage needs.