Buying a New Home? Avoid These 5 Mistakes

Dec 16, 2015

Buying a new home can be exhilarating, overwhelming and scary all at the same time, which makes it easy to overlook important aspects of purchasing a new home. No need to worry, we put a list together of what you should be aware of when embarking on your home buying journey!

Skip the Home Inspection

It is important to be aware of every detail of your potential soon-to-be home, which is why a home inspection is crucial. A home inspection will determine issues with plumbing, heating and cooling, mould, carbon monoxide and more. Turning a blind eye to those things can be hazardous to your safety and financial situation! Bottom line is, don’t skip the home inspection.

Not Budgeting

Purchasing a home is a big investment and budgeting for this milestone in your life is crucial. Start by getting pre-approved or pre-qualified before you begin house hunting. During this process, the bank will let you know how much they are willing to lend you. From there you can establish a good price range to present to your realtor. Don’t let your realtor show you anything over your budget, because you may be tempted to purchase something you simply cannot afford. Be strong and stick to your budget!

Not Researching the Neighbourhood

Before committing to a home, do some research on the neighbourhood and general area. Is it an up and coming area? Are there good schools close by? Is it a family-friendly neighbourhood? You can speak to residents, local business owners and your real estate agent to ensure that it’s a neighbourhood that suits all your needs and expectations.

Not Doing Your Research About the Costs

The excitement of moving into a new home can blind us to the important things. Don’t let hidden costs be one of them. There are many costs that come with purchasing a home, and as long as you’re aware of them, you can stick to your budget and live comfortably. Here are some costs you should be aware of:

  • Home insurance
  • Property Taxes
  • Land Transfer Tax
  • Interest Adjustment
  • Maintenance

A New Home Doesn’t Mean New Everything

When purchasing a home, we often get carried away with wanting to make the home perfect and beautiful right away. The best advice is, to live with what you have and save until you can afford what you want. Besides, you may change your mind a hundred times before choosing that new couch, or rug.  Unless it’s an emergency, don’t rely on credit cards to upgrade your home’s interior. There’s no rush! Save up and indulge when you’re ready. You’ll be able to truly enjoy your home when the things you own are paid for.

Do you have any other common home buying mistakes to avoid? Share them with us in the comments below!

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