4 Common Home-Buying Mistakes and How to Avoid Them

Learn the common mistakes made when buying a home and the steps you can take today to ensure successful homeownership with MortgagesToGo.ca

Buying a home is one of the biggest decisions you’ll make. As much as home ownership is an achievement, like any other achievement you make, it comes with its ups and downs that can be particularly exhilarating. Having said that, what would you have done differently?

For example, when buying your home did you not consult a professional before choosing the best mortgage company to use? Should you have considered using an agent instead? What would be some of the advantages or disadvantages of having a real estate agent as opposed to just doing everything yourself?

There are frequent home-buying errors that you should avoid regardless of whether you are purchasing a house for the first time or moving on from the sale of an investment property. In a bid to avoid these errors, we are going to look at 4 of them and what you can do to avoid them.

Borrow beyond what you can afford.

When you get pre-approved for a mortgage, you are bound to be approved for much more than you can reasonably afford. Unfortunately, some home buyers use the whole amount of the mortgage that they were approved for, which can often be up to six times their annual income.

You will wind up longing for things you cannot buy if you search in areas that are out of your price range. This could put you in a risky situation where you try to spend more money than you have. The main factors that may add up to you going for what you cannot afford include:

Underestimating additional costs.
Being influenced by your emotions.
Not getting professional help.

You can avoid this by:

Starting your search at the low end of your price range.
Make sure that you use appropriate professional services.

Not doing intensive research.

You won’t know if you are getting a good deal or not if you don’t investigate the real estate market where you’re looking for a home. Make a note of the suburbs you’re considering, and try to visit as many properties there in the next three to four months to get a sense of how prices are changing. You need to consult a house-buying professional regularly to help you in knowing what you want, how, and where to look for it.

Underestimating all of the costs associated with a home purchase.

You might simply consider just the home’s sale price, but in the big picture, this price alone is meaningless. You will also need to worry about a variety of other expenses including general closing fees, turn-on fees, relocation expenses, loan application fees, private mortgage insurance, and home insurance. While calculating costs associated with a home purchase you should consider the following:

You will pay fees to the mortgage lender, appraiser, title service providers, and others in addition to the agreed-upon price of the home.
The fees you’ll pay a closing agent are only one part of the closing costs. These may also include the expenses made during the loan application and property purchase process.
A monthly mortgage payment, real estate taxes, homeowner’s insurance, and, if appropriate, an HOA is among the predictable continuous expenses associated with a home.
Even if some expenses, like maintenance and repair charges, are less predictable, it is still a good idea to budget for them so you won’t be caught off guard when sporadic bills pop up.

You can avoid falling victim to this mistake by seeking help from experienced professionals for you to understand taxes and other mortgage fees.

Not using a real estate agent’s assistance.

It is feasible to purchase a home without a real estate agent’s assistance, but it is crucial, the savings are not worth it. You need a qualified and experienced agent your entire life for this project. To ensure a straightforward home-buying procedure, engage the necessary professional services. You should also consider a conveyancer and a qualified building inspector.

You’re ready to achieve your big dream of buying a house and do you want to avoid making common mistakes? This is how: