Are you thinking about buying your first home? You need to know that the process of purchasing a property can be stressful and challenging. As a first-time homebuyer, you are prone to making lots of mistakes due to lack of information. Some of these mistakes can be costly if you don’t do thorough research and due diligence. Keep in mind that there is a lot to do before you can unlock the door of your home and claim ownership. From choosing a good real estate broker in Montreal to finding a perfect location where you prefer to stay.
Here are the top four first-time homebuyer mistakes you should avoid:
Shopping for a Home First Before You Secure Financing
Typically, the home buying process shouldn’t begin with home searching. However, a significant number of first-time homebuyers will go shopping first before they secure financing. The first thing you should do is secure a mortgage prequalification unless you have enough money to pay for your first home.
First-time homebuyers fear that the lender may tell them that they don’t qualify for a home loan or they are eligible for a little amount than they anticipated. Make sure that you talk to your lender and get prequalified before you hit the market so that you avoid looking at houses that you can’t afford.
Making a Down Payment That Is Too Small
It is mandatory for you to make the 20 percent down payment to become a homeowner. Various mortgage options can enable you to purchase a home with a zero down payment or a less than ten percent down payment. Although this may seem like a fantastic idea, it’s not. It’s good to wait until you have a bigger down payment (more than 20 percent) before you initiate the process of purchasing your first home. The key here is to make sure that your down payment secures you an affordable monthly house payment. A larger down payment offers you a smaller mortgage which leads to affordable monthly house payments.
Working With a Bad Real Estate Agent
This is one of the most common mistakes that first-time homebuyers commit. There is nothing as stressful during the home buying process such as working with a bad realtor or none at all. It is recommended that you hire a professional and experienced real estate agent to take care of your interests and close the deal on your behalf. Working with the wrong real estate agent can adversely affect your home buying experience especially if they won’t take you out to see the properties.
Letting Your Emotions Control Your Decisions
Buying a home can be a long and frustrating process. Sometimes, you will have to deal with rejections on the first offer that you make or cope up with intolerant home sellers. Its also relatively easy to fall in love with a property that is way beyond your budget or get caught up in the heat of bidding which might make you pay more than what you expected. Its okay to get excited but don’t allow your emotions to control the critical decisions that you will have to make.