5 common buying errors for new home owners

Are you a new home buyer entering the market for the first time? This is an exciting period, and also one you want to be well-prepared for! As you make your way through the market, there are some home buying errors you should be aware of, so you know to avoid them. Here are five common mistakes buyers make that can impact your success in the housing market!

#1 Not understanding the market

As a home buyer, it’s always a good idea to gain a basic understanding of the housing market. This will help you gain confidence as you move through the buying process and experience the different stages of purchasing. For example, you can start by learning a bit about common terms used in the housing market. This includes basic language surrounding interest rates and mortgage products you should learn to recognize. You should also explore housing trends specific to your area, such as the average housing price and how supply and demand are shaping up. There are endless online resources that can give you breakdowns of housing in your areas of interest. This will help you learn what you can expect and how you can prepare.

 This doesn’t mean you need to learn everything there is to know about purchasing a home! Real estate professionals are designed to help you clear the hurdles throughout the process, and they provide you with a smooth transition into homeownership. While learning about the market is great, you don’t need to become an expert, and you certainly shouldn’t try to navigate the market alone.

#2 Not being selective with your real estate agent

Your real estate agent will be a key part of your buying experience and will heavily influence your success in the market. While there are many experienced and successful agents, it’s still important to be selective when deciding who you would like to work with. One of the biggest buying errors is assuming every realtor will work equally well with you. In reality, you should be searching for an agent who meets your specific needs and has experience with buyers in your situation. Every buyer is unique, and your agent should know how to tailor their services to you! First-time buyers often have different needs and budgets compared to move-up buyers, so you will want to ensure your agent is able to meet those needs. Take some time to research potential agents, read client reviews, and meet with them in person to see how they operate. 

#3 Forgetting to budget for closing costs

Most of our energy goes toward saving for a down payment and making sure we can afford monthly mortgage payments. However, there is a whole other part of the buying process you can’t forget about, and that is the importance of budgeting for closing costs. These are a series of individual expenses that pop up throughout the buying process, often close to the end. They include things like your legal fees, moving costs, title transfers, and land transfer taxes. Individually, these costs are relatively small, but altogether they still equal about two to four per cent of your home’s purchase price. Forgetting to budget for these expenses can be very costly in the end when they are all due! If you are just starting out in the buying process, don’t make the mistake of letting closing costs float to the back of your mind.

#4 Underestimating the length of the process

Once you decide you want to buy a home, you might become super eager to find the perfect property, seal the deal, and move in as soon as possible. However, it’s important to be patient. There are a lot of steps to get through before you can move into your new home, and it’s normal for the process to take time. Many buyers make the mistake of underestimating the time involved in a home purchase, and they grow impatient and frustrated. As a result, they might rush into buying a home that ultimately doesn’t meet their needs. Instead, stick with the process and be patient. You will find the right property, and it will be worth the wait.

#5 Not using a mortgage broker!

Finally, one of the most major buying errors is opting not to use a mortgage broker. Sometimes, buyers skip this step because they prefer to find their own lender and mortgage product, or they think using a broker will cost them. In most cases, buyers do not have to pay a fee to use a broker, as brokers are paid by lenders. This means a mortgage broker is an experienced professional ready to guide you, free of charge. As for completing the mortgage process alone, buyers will find that many lenders only work with clients who come from brokers. This means you will always have better luck buying a home and securing a mortgage when you take advantage of a broker’s services!

These home buying errors are not uncommon, but they can be costly. It’s important to prepare yourself for the purchasing process so you can be sure to avoid the same mistakes down the road. If you are ready to find the right broker to help you secure your mortgage, now is the time to reach out to us! 

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.