6 Common Mistakes Home Buyers can Make
#1) Not Getting Pre-Qualified for a Mortgage
Before looking for your new home, take the time to get pre-qualified by the bank or mortgage broker you choose. This can save you hours of searching for homes in the wrong price range or worse, discovering a home you absolutely love and then finding out you don’t qualify for the right financing. Pre-qualifying gives you peace of mind, helps narrow your search criteria and most importantly, gives your RE/MAX agent a negotiating edge by being able to alleviate the sellers concern over financing. The latter is especially important should a competing offer surface.
#2) Not Shopping For Mortgage Terms
Rates are negotiable! Banks will sharpen their pencils to get your business especially if you have a good credit rating and bring other business to them e.g. RRSP’s, general account, savings etc. Posted rates should be viewed as a starting point. You need to know what the best rate is and this is usually done by getting competitive quotes. Also, ask whether the bank about buy-out fees, penalties, payment options, portability, etc. The time spent can save you thousands of dollars over the life of the mortgage.
#3) Not Using A Professional Real Estate Agent.
Your RE/MAX agent can help you make a purchase with the least amount of problems. He or she can ensure the price you pay is fair market value. They can offer expert advice on what to look for, conditions to include, negotiation strategy, etc. After all, they work with you to ensure the best possible outcome for you.
#4) Not Getting Professional Inspections
Nobody wants to purchase a home only to find out later there are defects, latent or otherwise. Ensure you obtain inspections where needed e.g. home inspection, structural engineer, insect, radon, etc. If the inspection identifies deficiencies you may be able to negotiate the purchase price to cover required repairs or make your satisfaction of the inspection subject to the homeowner remedying the problem. Your RE/MAX agent can advise you on inspections you should consider.
#5) Buying First Before Selling
If price is important you should always sell your present home before buying another. It has the advantage in letting you know exactly how much money you will have available for your next home. Selling your home first allows you to place fewer conditions on your new home which makes your offer more attractive to a seller. If you find a terrific house, chances are others will also find it attractive too.
#6) Not Knowing The Full Cost Of Home Buying
Know all the costs associated with your purchase. Consider the following closing costs: Legal Fees, Transfer Tax, Property Taxes, Appraisal, Home Inspection, Maintenance or Repairs.