Are you having thoughts of becoming a first time home buyer? There are many benefits to owning your own home. However, you have to think and approach this in a smart manner by researching online mortgage calculators or asking questions with different financial advisors. But remember to shop around when it comes to your mortgage — don’t just settle with your bank.
Some questions you might consider asking yourself are: “How long do I plan to live there?” and “What’s the chance that I’ll move out of that home without too much financial burden?”
1. Renting might actually be the better option
Buyers need to recognize all of the many expenses renters don’t have to worry about — like closing costs, and mortgage insurance — may end up costing as much as a down payment, and that is not including the unseen maintenance fees you might incur. So with the amount of money it takes to buy, you might actually be better off renting.
2. Not being ready to compete
The housing market is a competitive one. First time home buyers must be ready to make a fast decision so they do not lose out on the house that they want. Many of the lower priced homes sell quickly, so you need to be ready to pounce on something you want.
3. Putting too much faith into online information
It’s good to read about information online, but your best bet would be to sit down with a mortgage broker or your bank. Don’t be afraid to shop around and get the information you need.
4. Skipping the home inspection
Don’t cut expenses by skipping the home inspection. You might be saving money at first, but it takes a trained eye to see problems that can exist in homes, which could someday lead to thousands of dollars in repairs.
5. Expecting your home value to increase over time.
Many first time home buyers invest their life savings into their home and then expect to earn a profit when they sell five or six years down the road. Expecting this could give you a rude awakening when it comes time to sell.
By shopping around, and speaking to different mortgage brokers, you can avoid these errors and be better off as a buyer. Contact Team Jardine and we will provide you with excellent advice and do the shopping around for you! We’re here to help.