11 Costly Saskatoon Home Buyer Mistakes to Avoid
Becoming a homeowner is a really exciting process, but is very complicated as well. There are many steps to follow to ensure the home-buying process runs smoothly, and there are many mistakes that can happen along the way. These mistakes can lead to higher costs for your home purchase, or even lead to losing the house.
By understanding the mistakes most commonly made by home buyers in Saskatoon, you will be able to ensure an easy home purchase. Here they are:
1. Not having people looking out for your best interests
Not having people on your team to help you through the process makes buying a home more difficult. Your real estate agent, lawyer, and mortgage broker are trained to help you along the way and have all the information you need to understand the process. Having a team that is dedicated to serving your best interests is the key to the best home purchase experience
2. Waiting too long to get into the market
The best time to start looking for a house is as soon as you are wanting to buy. Waiting to enter the housing market gives you no advantage, as everyday houses are sold. By waiting to enter the market, you may be letting your dream home be sold to someone else, and you may never have the opportunity to purchase it again.
3. Only going to the bank
Although banks are capable of completing a mortgage, it is a mistake to assume they are your best option for mortgage financing. Banks only have access to their own rates for completing a mortgage, while mortgage brokers have access to many (TMG Brokers can access financing from over 30 lenders). This ensures that you can get the best mortgage for you.
4. Buying outside of your price range
Knowing your budget is very important to the successful home purchase. Trying to buy a home without knowing your price range could end badly. If you are unable to afford the home you are wanting to purchase, then you can be overwhelmed with expenses, which could lead to losing the house.
5. Not getting pre-approved
A pre-approval is a very important step in finding your dream home. A mortgage broker can help you get pre-approved for a mortgage to help you know the amount you can afford for your dream home purchase. It also can lock in an interest rate up to 120 days. Find out more information by reading this article on the Importance of a Mortgage Pre-Approval.
6. Buying the first home you find
Knowing what you want in a house is great, but buying the right house takes time. If you move too quickly on a house purchase, you may miss out on better home options that come along in the future. By viewing potential homes, like at open houses, you are able to get a better sense of what you want in a house and can make an informed decision in the future.
7. Thinking you will find your dream home right away
Trying to find your ideal home is a long process. A big mistake is getting disheartened while searching for your dream home. After a while, you may think your ideal home doesn’t exist, but it does. The mistake is when you settle for a home that isn’t right for you. Buying a home is the biggest transaction of your life, and buying the wrong home can leave you unhappy for years to come.
8. Trying to grind down the seller's price on your dream home
Once you find the perfect home for you, moving quickly to secure it is incredibly important. Trying to reduce what the seller is asking for, or offering a low amount for the house is a mistake, as it may lead to you losing your dream home. If another offer is received that is better than your low offer, they will sell it to somebody else, and you will miss the opportunity to buy your dream home.
9. Not getting a home inspection done, or hiring someone who works for the seller/builder
Some lenders will require a home inspection to ensure there are no issues, but other lenders may not. Regardless of the lender’s decision, it is always important to get a home inspection prior to committing to the purchase of a new home. There may be major issues with the property that the seller is hiding, or doesn’t know about, and finding out about these issues later may cause you to pay thousands of dollars to fix.
10. Not saving enough money, or planning for the costs involved
Most people are aware of the requirement of savings for a down payment for a home purchase, but many don’t realize that there are other closing costs involved with the purchase of a house. Costs like lawyer fees and home inspections can add up to thousands of dollars. Not being prepared to pay them could create issues when closing the home purchase.
11. Altering Financial Pictures Prior to Closing
Once you are in the process of making the purchase, it is important to not change the aspects of your financial picture. It is important to realize that a pre-approval is only secure for your financial position at the time it is made. By adding debts to credit cards or lines of credit, quitting your job, or changing careers, you may be changing your eligibility to make a purchase.
A great way to avoid many of these mistakes is by starting to work with a mortgage broker who has your best interests in mind. By using a mortgage broker throughout the home buying process, you will be able to understand how much you can afford to buy, make a solid offer on your dream home, and get through the home buying process mistake and stress-free.
Visit TMG Online and fill out an application to start working with a licensed Saskatoon Mortgage Broker who can help you save money and make your home buying experience enjoyable. Get started today.