Buying a house will now be easier and you’ll surely become a smart buyer with these hacks for first-time homebuyers in Toronto. When sellers or seller’s agents know that you’re a new buyer, there are chances that they might try to sell you a house at a higher price, or try to confuse you with legal terms and paperwork, or just try to numb your brain with huge real estate terms that you have never heard of.
But don’t let that worry you; if you have the right information, a strong mind, smart buyer instincts, and lots of patience, then let me assure you that your home-buying process is going to be easy and simple.
Buying a house for the first time doesn’t necessarily mean that you’re inexperienced, or only have half of the knowledge required for buying the right house for yourself. Even with the half-knowledge and buyer instincts, you can end up with a home that suits your needs or with the house of your dreams!
So instead of me only telling you how the housing market works, I’m going to tell you the best and top hacks for buying a house for the first time. Use this video as a guide to save yourself from making costly mistakes and to find your dream home!
There are so many elements involved in buying a house that you may want to call yourself an expert at the end of it! From looking for properties to paying the last fee, you will learn it all!
But only knowing what you have to do is not enough, you should also know what things you should avoid.
Many first-time homebuyers make mistakes simply because they had no idea what they would have to deal with later on.
Worry not! I am here to share with you guys what are the common mistakes of first-time homebuyers.
Let’s take a look at them.
Not planning early enough –
Payments are usually hefty so it takes time for them to be processed from one account to another, so don’t wait until the last minute to have your deposit funds ready and accessible. In today’s market, things move fast and once you like something, you may only have hours to get things lined up.
Buying a home is not just about the down payment. After you become a homeowner, you will realize that there are many other things that have to be changed so you must plan for the REAL cost of your home. Most people under budget their closing and carrying costs.
You should budget to pay for taxes and insurance fees depending on your purchase price, 1% to 4% of the purchase price for closing costs, $1000+ for moving costs, $1000 – $5000 for repairs and fixtures, $700-$2000 for a lawyer, $300 to $500 for a home inspection, costs of new appliances, etc.
In addition to saving for future expenses, you must also set aside funds for unexpected expenses – legal fees, an increase in interest rates.
Not getting pre-approved for a mortgage –
Every real estate agent will tell you that getting a pre-approval is the first step in buying a home, especially in Toronto’s competitive market.
Without a mortgage pre-approval, your offer will likely be ignored, that’s because sellers won’t want to take a chance on someone who doesn’t even know if they can get a mortgage – especially if they have many other offers.
The pre-approval process will give you an idea of what you can realistically afford when buying a home and ensure that you stay within the budget range you are able to afford without being deceived or disappointed by the seller.
A good realtor won’t even work with you without a proper preapproval in place as they know they would be doing a disservice to you.
Settling for the first mortgage that is offered –
Pre-approval for a mortgage comes with pre-approval for an interest rate and usually, there is more than one option available to you.
All mortgages are not the same. Some low-rate mortgages are really horrible for you as they lock you down with hefty penalties and strict restrictions if you ever want to access your equity in the property.
Do your homework and don’t be afraid to negotiate a good mortgage rate. There are several websites listing the best comparable rates for various banks and lenders. For example, www.lowestrates.ca
You will know the best rate if you do your research. Many banks will offer their own customers a discount for their loyalty.
Also read the fine print, out of 100 people that I talked to, 1 person had read their mortgage documents’ fine print. This is crazy.
Not getting a Home Inspection –
When you buy a home, if it is new, or if you are buying it from a friend, you might want to skip an inspection to save a few bucks. But rest assured, this will be the most expensive mistake you make.
Inspections uncover issues in a property that the owners might not be aware of. Some issues are minor, but others are more serious and more expensive!
If you never buy a car without having a professional look at it then why would you buy a house without doing the same?
Ask your real estate agent and friends and family for recommendations for home inspectors. You can use their reports to negotiate any repairs needed and to make sure the house matches your needs.
There you go, these are the 4 mistakes you should avoid while buying your first home.
Other mistakes you should look out for are waiting to buy with a 20% down payment, hiring the wrong real estate agent, not checking credit reports, being stuck in only one neighborhood, and making emotional decisions. Even though these mistakes may seem small when you hear them, these are usually the ones that end up being the costliest ones.
