5 Mistakes First Time Home Buyers Make

Buying a home can be a difficult task. Especially, if you’re buying a home for the first time. 

It can be as scary as it is exciting. 

Whether you’re looking for homes for sale in North London, Ontario, St. Thomas, Ontario, or anywhere else in Ontario, chances are that you’ll make some mistakes that you’ll regret later. However, there’s no need to worry because we’ll tell what these mistakes are and how you can avoid them. 

 

1.  Not getting pre-approved

Failing to get pre-approved is the most common mistake first time home buyers make. If you’re not pre-approved for a mortgage, you can miss out on opportunities to buy an affordable home because some other buyer got it as they were pre-approved already.  

2.                    Talking to only one lender

Although this goes without saying, some buyers still get a mortgage from the first lender they talk to which can leave thousands of dollars on the table. Buyers must shop around with at least three different lenders, as well as a mortgage broker. The more you shop around, the better basis for comparison you’ll have to ensure you’re getting a good deal and the lowest rates possible. 

3.                    Draining all your savings

Draining almost all of their savings on the down payment and closing costs is one of the biggest mistakes first-time homebuyers make. Depleting all your savings to save on a mortgage is risky and should be avoided. 

4.                    Looking for the ‘Perfect’ property

There’s nothing like a ‘Perfect Property’. Looking for perfection can decrease your choices significantly and you could lose out on a great house thinking that something better will come along. This can also lead you to overpaying for a house. 

5.                    Being careless with credit

Keeping a check on your credit after you get pre-approved is crucial. Opening new credit cards, closing existing accounts, taking out new loans or making large purchases on existing credit accounts in the months leading up to applying for a mortgage through closing day can jeopardize your chances of securing the loan. 

 

So, these are the top 5 mistakes that first time home buyers make. 

Now that you know about these, there’s one less thing for you to worry about. Cheers!

 

If you’re looking for homes for sale in North London, Ontario or St. Thomas, Ontario, check our listing here.