Six Costly Mistakes to Avoid When Buying a Home

Thinking about buying a home? Here are six common and costly mistakes to avoid:

1. Avoiding the Pre-Approval 

When it comes to home buying, few things are more disheartening than falling in love with a property only to discover it’s out of your price range. That’s why it’s essential to know how much home you can afford before you hit the market. Not only will a pre-approval letter help you narrow down your home search (saving you a ton of time), but it will also ensure you’re taken more seriously by sellers.

See our previous post:  Mortgage Pre-Qualification vs. Pre-Approval: The Differences You Need to Know

2. Overlooking Closing Costs… 

Closing costs are additional one-time fees associated with purchasing a home – they’re also frequently overlooked by buyers. Typically ranging between 1.5-4% of a home’s overall purchase price, closing costs cover charges related to legal fees, property insurance, land transfer tax and more. As these additional expenses can impact your offer, how much mortgage you qualify for, and your down payment, you’ll need to be prepared ahead of time.

3. …And Other Home Buying Fees

Moving costs, home inspections and property tax are just a few of the many other fees associated with purchasing a home. Throughout the transaction, these extra expenses can add up quickly. Be sure to set a budget in advance, to avoid any unwanted surprises (your REALTOR® will let you know what to prepare for). 

4. Skipping the Inspection 

Speaking of home inspections, neglecting to have a property assessed by a professional before you sign on the dotted line can have some serious financial consequences. For starters, an inspection will provide you, the buyer, with an “out” in the event of any major (expensive) defects (aka dealbreakers). It also gives you bargaining power, allowing you to negotiate the seller’s asking price based on any repairs the property may require.

5. Choosing the Wrong Mortgage 

As we already mentioned, you should have your pre-approval in hand before beginning the search for your new home. But it’s also important to shop around. While you will be understandably eager to start house hunting, rushing into a mortgage agreement without exploring your options can cost you thousands over the lifetime of your loan. Be sure to speak to a variety of lenders (and don’t forget to read the fine print) beforehand.

6. Going it On Your Own 

A reputable REALTOR® won’t just help you zero-in on the perfect home. Edmonton real estate professionals bring a wealth of invaluable services, advice and guidance to the table – all of which are critical to helping you save money (not to mention, time and stress). As a home is one of the largest purchases you’ll ever make, it’s imperative to have someone represent your best interests at all times.

See our previous post: Choosing an Edmonton REALTOR®: 8 Questions to Ask and Why 

Home buyers! Don’t forget to take advantage of our FREE buyer resources:

• Dream Home Finder
• Buyer Guide
• Six Essential Tips That Make Home Buying More Affordable
• Home Buyer Blog

Photo credits: shutterstock.com

Categorised in: Buying a Home, First-Time Home Buyer

This post was written by Terry Paranych Real Estate Group