There are a lot of steps that go into buying a home, and with all those steps, come a lot of mistakes as well. First time buyers looking at properties such as those among the St Albert real estate should do plenty of research into multiple areas, like mortgage rates, location of the neighborhood, other home prices in the area, and much more.
Despite all of the research however, these homeowners will still make mistakes, which can easily be avoided if you know what they are. Here are five mistakes new homeowners make that you should avoid.
1.) Not Doing Enough Research
If any sensible new homeowner knows one thing, it is to do their research on everything. Unless you’re already an expert or have a family member that is, odds are you’ll have a million and one questions about this major purchase and investment.
But how much research is too much? The simple and correct answer is: you can never do enough. Information is power and for a decision as important as this, you’ll need as much as you can get on each step and part of the process.
2.) Building Debt and Not Saving
The financial side of homebuying is just as important as the information side. When you decide to buy a home, you’ll need to start saving, but even more so than that, you’ll need to avoid racking up other forms of debt.
This will help your chances of getting a better and more affordable mortgage. When a lender sees you’re not swimming in debt, they’re more likely to loan to you and be more generous with the monthly payments.
3.) Getting the House First
A common mistake that has very long term effects is buying the house first, before getting a mortgage. Checking what you can afford and setting a budget aside is crucial before actually finalizing anything on a house.
You don’t want your mortgage lender to have all the power in your deal, because if you buy the house first, they’ll know exactly how much you need and might give you steeper rates.
4.) Not Checking All Your Options
This reason goes hand in hand with the first one, but it is important to stress that you should not just look at two or three houses and then pick from them.
While it’s true that today’s housing market is volatile and there aren’t a whole lot of options, you still want to check out as many houses within your budget as possible to see which one is truly right for you.
5.) Moving too Fast
The last mistake that new homeowners will make is moving through the processes too fast. This is so costly that all of the other mistakes stem from this one.
Moving too fast through the research period may be considered not getting enough info, not waiting and saving enough money, buying the house before getting a mortgage, among other things. This and many more mistakes can all be avoided by simply taking your time throughout your search for a new home.
This is one of the most important decisions you’ll ever make in your life, so take your time and enjoy the process of purchasing your new home. You’ll thank me later!