5 First-Time Homebuyer Mistakes To Avoid
May 6, 2020 | Posted by: KeyRate Mortgage - Ottawa Mortgage Brokers
Buying your first home is a scary and exciting process because it’s a HUGE commitment. It’s easy to get swept up in the excitement of home shopping and mistakes can leave you with buyer’s remorse later.
Here are some First-Time Homebuyer Mistakes you may want to avoid:
1) Looking For a Home Before Applying For a Mortgage.
A common mistake that many first-time buyers make is to start viewing homes before they get in front of a mortgage professional. You may end up behind the ball if you find a home that you love and end up losing the property by not being pre-approved for a mortgage.
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2) Draining Your Savings
It may not be a good idea to spend all or most of your savings on the down payment and closing costs, especially with the current events. It is a good idea to have three to six months of living expenses in an emergency fund no matter if you plan to buy a house or not.
3) Buying More House Than You Can Afford
It is easy to fall in love with a home that may stretch your budget but overextending yourself is never a good idea. Buying a house that exceeds your budget may put you at a riskier position and less likely to have wiggle room in your monthly budget for other expenses.
4) Miscalculating the Hidden Costs of Homeownership
If you are shocked by seeing your new monthly mortgage payment, wait until you add up the other costs of owning a home. As a homeowner, you will need to pay for property taxes, mortgage insurance, homeowners insurance, utilities, etc. That brings us back to the points listed above, you may need to keep your savings intact.
5) Paying More Attention to the House Than the Neighborhood
It is understandable that you would like a home that meets your needs and checks off items on your wish list. But it is easy to get lost in the home’s aesthetics instead of focusing on things that may be more important. It could be difficult to live in a house you love that is in a neighborhood that you dislike.