Homes and Condo Mississauga

9 Home Buying Mistakes First Timers Make


9. Shop before being pre-approved for a mortgage.

Many novice home buyers decide that they are ready to take the plunge and start exploring open houses "to see what is there for sale." While you get a good feeling for the market, you run the risk of falling in love with a house that does not fit your budget. Before you go shopping seriously on the market, visit your bank, mortgage broker or lender and get an approval in advance. You know exactly the amount you qualify for, so when you are ready to make an offer, you can do so with confidence and without "conditional funding" clauses.

8. Skip the mortgage advance entirely.

We call it again, because it is super important. By being approved in advance, you not only get information about how much you can spend on a house, but it also guarantees the current interest rate for about 90 days, giving you the freedom to shop in the knowledge that you will be safe in the near future. are from interest rate increases. Now that interest rates are rising, this step is more important than ever.

7. Making major changes in life when applying for a mortgage.

Once you have submitted your application, avoid changing jobs, making large purchases on credit or taking out new loans. These can all change your financial picture and may affect your ability to qualify for the mortgage or the amount you originally expected. If possible, wait until you have passed the t & # 39; s and the & # 39; i & # 39; s & # 39; have dotted.

6. Not enough to save for a down payment.

It is true that the minimum requirement in Canada is five percent, but try to deposit at least 20 percent of the purchase price. If you have 20 percent or more, you do not have to take out a mortgage with high interest rates – and thus prevent the premiums for a mortgage standard insurance. If you can not store this minimum amount, this may be an indication that you're shopping outside your financial options. Consider lowering your budget, postponing the purchase until you have saved enough money, and consult a trusted financial advisor for advice tailored to your situation.

READ: https://blog.remax.ca/much-will-costs-buy-house /

5. No account is taken of the "extra" costs.

You can estimate that you want to spend (approximately) between 1.5 and 4 percent of the purchase price of the house. This includes costs such as the down payment, property insurance, title insurance, attorney fees, home inspection price, removal costs and more. Make sure you include it in your purchase plan.

Use this [MARCHHOUSINGPLANNER to begin with.

4. Do not see enough houses.

Before settling down, make sure you sow your oats, so to speak. Because you have never had a home before, and especially when you move from your parents' location, you want to explore many different house styles and neighborhoods. Keep an open mind – you just do not miss yourself! In reducing the location of your home, weight factors such as proximity of work, family and friends; public transport and access to major roads and motorways; and things like shopping, services, green space and your lifestyle. that affect the quality of life of the house, the current value and the resale price of your house.

READ: Location versus house style

3. See too many houses.

Do not get us wrong – it's definitely a good idea to see what's on the market, if only for the sake of comparison. You will gain a better understanding of where similar properties are valued, their condition and your negotiating position. This is valuable information, whether you buy your first house or your tenth. But beware: especially in a hot market it can be on the fence that you lose the property. A trusted, experienced broker can advise you on this.

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2. Do not put everything on paper.

Under the right market conditions, negotiation can be part of your purchase plan. Any conditions for the purchase and sale must be on paper. If it is not in the contract, it does not count. Your contract is your only way to hold the buyer and seller accountable. An experienced broker can advise you and negotiate on your behalf.

READ: 7 questions to ask an agent before your assignment

1. Subtract more than you can chew.

You probably have the term " housearm ." Buying a home is a huge financial obligation, so make sure you can afford it. As a first acquaintance with home ownership, condos are a popular choice thanks to their lower price, a smaller footprint (read: less maintenance and lower operating costs) and their central locations. But condos are a lifestyle choice as well as a financial choice. Consider your purchase from all angles.

READ: Buying a house without breaking the bank

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