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3 Mistakes First Time Home Buyers Make

When doing anything for the first time, often you are not sure exactly what to do. I remember when I was a first time home buyer, I didn’t really know where to start. Luckily, with the help of my Realtor mom in-law, I had some excellent guidance on how to achieve my dream of purchasing my first home.

Without the help of an experienced and knowledgable expert, I’m sure I would have made a lot of mistakes that I wouldn’t have even thought about.

Here are 3 Mistakes that First Time Home Buyers Make.

  1. Shopping without a pre-approval.

I’ve heard stories of people going to open-houses and looking online to find a home they absolutely love, put an accepted offer on it, only to find out that they can’t qualify to purchase it.

Save yourself the major disappointment! Talk to your Mortgage Broker to find out how much you qualify for so you can fall in love with something that will be obtainable. Smart buyers know their budget.

2. Contacting the Listing Agent to view a home.

I had a friend who would contact the listing agent for every home they wanted to look at. Not only did they create a lot of work for themselves, the put themselves in a position where the advice given to them may not be in their best interest.

When you have a Realtor represent both the buyer and a seller in a transaction, you don’t know whose best interest they really have in mind. The likelihood is that the Realtor will be more biased to the seller. This is already something that is no longer allowed in BC!

My advice is to find a Realtor of your own that you get along with, understands you, and will work hard for YOU. Your Realtor will know more about the homes that you’re looking at, know about homes coming on the market that might work for you before you do, set up the viewing appointments to work with your schedule, and will know how to negotiate the deal for you the right way.

3. Saving only enough for the down payment

You’ve worked hard to be able to finally save enough for a down payment on a home. You’re excited to finally go house shopping and find one you love. You go to get a mortgage approval and find out that there are more expenses you didn’t even think about!

In addition to your down payment, lenders want to see that you have up to 1.5% of the purchase price available for closing costs.

What are closing costs you ask?

Closing costs are things like your legal fees, inspection fees, appraisal fees, title insurance, property tax adjustments, property insurance, utility hook ups, moving expenses, furniture, etc.

1.5% of the purchase price is a good amount to have available so that not only can you purchase your home, you can live in it too. You never know when some expenses come up. Little things here and there can certainly add up, so it’s best to be prepared.

Looking for a pre-approval or for some more advice? Contact Rose Blankenagel at Mortgage West - The Mortgage Centre today!

Real Advice for Real Life