Don’t Make These Mistakes When Buying a Home

Written by Posted On Thursday, 30 August 2018 07:12

Buying a home is a huge decision and making mistakes can cost a fortune. Not only do you have to watch out for open house warning signs, but you also have to make sure that you don’t rush into things without due research. Below are the worst things you can do when buying a home and how to avoid them.

Hold Out Until You Find the Perfect House

The hard truth is that the perfect house does not exist. If you make it a habit to pass up amazing homes for little details such as not liking the paint color or the hardware, you’ll never find your dream home. Have a list of deal breakers and must-haves to help you zero in on the best home for you.

Go Without An Agent

While it is possible to find a great home on your own in some neighbourhoods, chances are that isn’t possible for sought-after locations unless you know the seller from somewhere or if you’re willing to pay a lot more than the asking price. A buyer’s agent can help you find a home, negotiate terms, and close the deal.

Buy Expensive Things Before You Close

Your credit score plays a huge role in securing a mortgage to buy a home. If you kill your credit score with huge expenses and more debts before closing a sale, you may end up with huge interest or end up with rejected mortgage application.

Don’t Plan for Closing Costs

Closing costs can net between 2% to 7% of a home’s purchase price the majority of which is shouldered by the buyer. This translates to thousands of extra cost. You wouldn’t want to have financial trouble if you don’t plan for this.

Consider Only A Specific Mortgage Lender

When you meet with just one mortgage lender because you want to go through paperwork with just one, you deprive yourself of better options and the chance to pick a mortgage lender with the best terms for your needs. Ideally you should ask for quotes from a minimum of 3 mortgage lenders and have time to talk to each one to determine the best fit.

Send Unreasonable Lowball Offers

Getting a bargain is one thing, and insulting the home’s seller is not in the same ballgame. A ridiculously low offer may push the seller to not even respond and you lose the chance for a fair counteroffer.

Understate Your Budget

Just like with making a ridiculously low offer, stating an impossibly low budget will turn even the nicest realtors from you. It is a fallacy that realtors will want you to overspend or max out your budget. Professional realtors want you to get the best home for your needs and within your budget because their reputation is at stake. More so, a happy buyer is likely to recommend the realtor and contact the realtor again when it is time to sell the home.

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Brad Miller

The Goodale Miller Team: A group of Oakville Luxury Real Estate Professionals that operate on a philosophy of honesty, integrity, and results.

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