Mistakes to avoid
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Are you looking to purchase your first home? Make sure you avoid the following first home buyer pitfalls: |
| 1. Skipping the home inspection |
| The best way to avoid nightmares later is waking up now! Thoroughly inspect the home before making an offer and if you go ahead with the purchase, arrange another inspection prior to settlement. |
| 2. Trusting a verbal agreement when buying your home |
| Everything has to be signed or it’s just a promise – avoid the disappointment of a verbal agreement. |
| 3. Looking at a house you can’t afford and falling in love with it |
| It is best to only look at homes within your price range. Start small and build equity in your first home and look to expand later on. |
| 4. Not signing contract of sale ‘subject to finance’ |
| Protect yourself by always stipulating in the contract of sale that it is ‘subject to finance’. If you don’t the contract will be unconditional and you will have to go ahead with the contract (or pay a significant amount to get out of the contract). |
| 5. Forgetting about the hidden costs of home buying |
| Make sure your realtor gets you a pre-purchasing total cost estimate. |
| 6. Not getting a pre-approved home loan |
| Not getting pre-approval is like going on a cruise...you have to buy a ticket first, not after. Many first home buyers do not understand the true cost of purchasing a home. Always sit down with your lender and get pre-approval before you start looking. |
| 7. Blindly following your realtor’s advice |
| Make sure you are the one that wants to buy the house – not just your realtor. |
| 8. Not considering home resale value |
| You will likely have to move one day, make sure you consider resale value. Look at the area you are buying in, is it close to schools, shops etc. |
| 9. Not taking advantages of programs or grants for first home buyers |
| As well as the First Home Owner Grant and land transfer duty discounts, some new estates may offer grants for building in new growth areas. The experience of your realtor is a key factor here, talk to them and always do your research. |
| 10. Not budgeting for your monthly mortgage payment or future changes |
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Have you factored in rates going up, or the possibility of going to one income if starting a family or you become unemployed. Do not purchase above your means and always consider the unexpected. We suggest you always sit down with one of our lending specialists prior to purchasing your first home. We understand how daunting the process can be and want to provide you with all the information you need to know to make an informed decision when purchasing your first home. |
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