You are finally buying your first home! It has been a dream for a longer time and you are sick of renting. This is your fist big investment and milestone but you never expected buying a house would be this much stress and paperwork!
You start feeling that it is getting to be too much.. but don’t give up on your dream just yet!
So before you start the process of buying or even looking at a property, here are 9 costly mistakes to be avoided to make buying your home a piece of cake!
- You don’t have a pre-approval for your mortgage and this means you are not even sure you qualify for a loan! This should actually be the first step even before you start looking at properties. With a pre-approval you will also be able to plan and know your budget.
- You have no priority list and you want it all! I am not telling you to not buy your dream home but you should set priorities to make it easier for you to make your decision and an offer.
- You fall in love with the house, this also means that all sense goes out the window! You forget about your budget but also the condition of the house. This could make the purchase very expensive in the end! Instead go in with a critical eye and chill mindset, this will also help in the negotiation part.
- You have not considered Notary costs and taxes and this can kill your budget! Notary costs and taxes can be calculated of the buying price and the mortgage amount to have this in mind when putting an offer!
- You think you can handle the inspection by yourself, but lets face it.. You are no pro! Pay a little extra money to have a professional coming to have a look at the house as they can find current issues but also future repair that needs to be made that can’t be seen by the naked eye.
- You are too excited about buying the house you don’t pay any attention to read the contracts. If you don’t feel like doing this you can always consult a lawyer to review it. Also give yourself a bit of extra time to get the paperwork arranged as this can delay the process.
- Consider hiring a mortgage broker that will help you with all the steps and paperwork. Buying a house can be very stressful and it is very convenient to have a professional guiding you and arranging the best deals. In the end you do not pay much extra as it is settled on the commission from the bank plus, they will also save you money as they will negotiate prices and rates for you.
- You pick a lazy Notray that is not doing a correct background check for the property. There might be claims, leases, attachments or pending lawsuits to the property that will be transferred to you with a purchase! A Notary can check this but the realtor can also have a clause in the Purchase agreement that relives from responsibility
- You sign a very basic property insurance. Buying a house is very costly and to save money you sign a basic insurance that the banks accepts. A very basic insurance will not cover all scenarios such as storm/ hurricane and this can be very costly in the end!
And what about your valuables, electronics and furniture that you keep in the house?
Sign a more extended insurance and include your valuables for a very little extra cost and give yourself peace of mind!