Top 10 Mistakes First-Time Home Buyers Make

For most people buying a home is one of the most important financial decisions they will ever make. And whether you’re a first-time home buyer, upgrading to a bigger home, or downgrading to a smaller one, the process can seem daunting. This is especially true…

8 first time home buyer mistakes | Building Pro Home Inspection Kelowna

For most people buying a home is one of the most important financial decisions they will ever make. And whether you’re a first-time home buyer, upgrading to a bigger home, or downgrading to a smaller one, the process can seem daunting. This is especially true for a first-time home buyer, who, though excited to be buying their first home, may find the whole process complex and time-consuming. But it doesn’t have to be. Like most things in life it pays to be prepared, and to help you we have compiled a list of the top 10 mistakes first-time home buyers make in order for you to avoid the same pitfalls.

NOT GETTING PRE-APPROVED

Before you even start looking for your new home, it is essential to get pre-approved for a mortgage. This carries the benefit of knowing the price range for a home you can realistically purchase. It can be time-consuming, as well as emotionally wrenching, to get attached to a house that is out of your price range.

NOT DOING YOUR RESEARCH

Location. Location. Location. Where do you want to live? Where can you afford to live? How do you separate your needs from your desires? These and many others are questions you must ask yourself. Research the utilities, services, schools, transport, shopping, and other amenities in the area you’re looking to buy a house in. Look at house prices: have they increased or decreased over the last few years? Being prepared is doing your research.

NOT HAVING A DOWN PAYMENT

If you can’t put a full 20 percent of the cost of the house as a deposit, you’ll need to pay private mortgage insurance, or PMI. This will increase the cost of your monthly mortgage payments, which will already be higher because you’re borrowing a larger sum. If you don’t have the 20 percent down, look for a cheaper house, or continue to save until you have the deposit amount.

NOT GETTING A GOOD BUYER’S AGENT

Find a good buyers agent to provide you with all the knowledge you need to make an informed decision about a property and its value. Buyer’s agents are specialists in searching, locating, evaluating and negotiating the purchase of a property and can save you a significant amount of time, money and stress.

MAKING AN EMOTIONAL DECISION

Buy with your head, not your heart. You must consider every aspect of the house with a critical eye. While the right home for you is a matter of personal preference and affordability, you need to separate your emotions from the decision. Don’t overlook defects to the structure or location of the house just because of the way you feel about it.

THINKING SHORT TERM

You should ensure not to get carried away with the home buying process and not overlook important information concerning the quality of the neighbourhood you would move in to, future developments in the area and the potential resale value of your home. As surreal as it might seem when buying a house, you should also be thinking how you will sell the house five, ten years down the road should the need arise. You do not want your property to devalue and suffer negative equity.

GOING TOO FAST OR TOO SLOW

Don’t be influenced by the housing market more than your own unique situation. Waiting for house prices to go up or down is a gamble you may not be able to afford. Don’t rush your decision to buy a house; ensure to do all your preparation. But, at the same time, do not be too demanding or unrealistic in your expectations. If you’ve searched for months and the house you want still isn’t available then it might be time to look in a different or more affordable area.

UNDERESTIMATING BUYING COSTS

Many homebuyers fail to budget for the full costs associated with buying a house. Apart from the actual cost of buying the house, there are loan application fees, mortgage insurance, acquisition costs, valuation costs, stamp duties, and perhaps even lawyers fees. Don’t be left out of pocket; be prepared for these additional buying costs.

UNDERESTIMATING RUNNING COSTS

In addition, don’t fail to underestimate the continual expense of owning your home after you’ve bought it. Rates, house insurances, utility bills, maintenance costs: they all add up. Owning a home can cost far more than renting, and first-time home buyers can be particularly susceptible to underestimating the running costs of a home. If anything goes wrong it’s up to you to fix. This is another reason not to overspend on the purchase of the house.

NOT GETTING A HOME INSPECTION

Finally, and vitally, not getting a proper home inspection could have disastrous consequences. A thorough inspection by a trained, experienced and certified professional can shine a light on potentially pricey and dangerous issues and stop you from making a decision you may later regret. You don’t want to rue the day you saved a few hundred dollars on a home inspection to later be paying thousands of dollars on costly repairs you could have avoided.

Your home houses the most important people and property in your life. A home inspection is your hard-earned money well spent. Building Pro Inspections offers you professional home inspections services of unparalleled quality and concern in order for you to make your home purchases with clarity and confidence.

Contact us today to learn more.