How To Avoid First Time Home Buyer Mistakes
If you’re a first time home buyer it is easy to get caught up in the excitement of buying your first home.
While buying a home for the first time can be fun and exciting, it’s a good idea to not let emotion get in the way of reality. Doing this could cost you a lot of money in the long run.
Here are some common mistakes that first time home buyers make and what to do to avoid them:
Talk with several lenders.
If you’re going to be financing the home that you buy, it’s a good idea to shop around for a mortgage and talk with a few different lenders. You may find that rates and terms differ from one to the other. Plus, you’ll also want to find a lender that you’re comfortable working with and whose advice you can trust. Often times your realtor can refer you to several lenders who have proven track records with first time home buyers.
Put together your wish list.
One common mistake that a lot of first time home buyers make is to start looking at homes before they know what they really want. Before you start looking at homes for sale, put together your wish list for a new home and prioritize the items that are most important to you. If you end up having to compromise you’ll know in advance what is – and isn’t – a deal killer.
Know your budget.
You’ve found a lender you like and have a good idea of what you can comfortably afford, and you’ve put together your wish list so that you can easily ‘check the boxes’ of each home that you preview. By knowing your budget, you’ll avoid the trap that many first time home buyers fall into – buying a home that they really can’t afford.
When you’ve found a home you love it’s easy to become overly optimistic about future pay raises or being able to cut some of the expenses that you have now. This is a common first time home buyer mistake, and one that can turn your dream home into a money pit if you’re not careful!
I've written a step-by-step ebook on buying a home in BC for first time buyers . Please feel free to download this free booklet.