7 First-Time Homebuyer Mistakes to Avoid

It’s always wise to learn from the mistakes of others and avoid stepping in unnecessary potholes. Here are a few common mistakes made by first-time homebuyers:

1. Home shopping before getting pre-approved: It would be a huge bummer to find the perfect house and have your offer rejected because you haven’t been approved for financing yet. You should get pre-approved before you start home shopping so you can get an idea of your purchase power and show sellers that you’re a serious buyer.

2. Going to your local branch for a mortgage: It might seem convenient to go to your branch around the corner, however your local branch representative works for the bank, NOT for you. We at 911 Mortgage Brokers – The Mortgage Centre will search and scour the entire gamut of mortgage lenders to find the mortgage that is RIGHT for you, at the lowest rates and the best terms in YOUR best interest.

3. Draining your savings: You might be tempted to drain your savings in order to put 20 percent down, but sometimes it’s better to take advantage of the first-time homebuyer option of putting as little as 5 percent down, even if that means you will have to pay for mortgage insurance. We at 911 Mortgage Brokers – The Mortgage Centre, will do a comprehensive financial analysis and provide you the best mortgage advice, for your own particular situation. You might be better off paying only 5-10% down payment and having some extra

funds as a cushion, rather than trying to put all your savings into down payment. Or, it might be advantageous for you to put a large down payment out right. We will discuss all the options available at the time of your purchase, so you can make an informed decision.

4. Foregoing an experienced real estate agent: Foregoing a real estate agent might seem like a good way to save money, but the seller actually pays for the agent’s commission, so you have nothing to lose and everything to gain. An expert agent can help you find the perfect home and negotiate a fair price. When looking for homes, ensure you get your Buyer Representation in order before you submit an Offer. Remember that the seller has their own listing agent to look after the Seller’s best interests. Ensure your Agent is looking afters yours.

5. Falling in love with Home Staging – home staging is when the seller declutters and rearranges the furniture to make rooms look more appealing to buyers. These days, some sellers remove almost all of their belongings so that a staging company can come in and completely redecorate. The effect? Stunning displays of unblemished design perfection. Playful bedrooms, serene spa-like bathrooms and spotless kitchens.

The problem is there’s a big gap between this idealized way of existing and how we actually live in a home. For instance, stagers will often remove necessary appliances—such as coffee makers, microwaves and blenders—to make countertops seem more spacious.

The trick is to not fall in love with what’s on display and to actually imagine where you would put your current belongings (or the furniture you plan on buying for your dream home). Do this by examining each room, including the built-in storage, to determine if it would actually suit your lifestyle and your furniture. Most importantly, don’t forget to ask about the home’s key components, such as the foundation, plumbing, and furnace and A/C units. Decorative flourishes, such as light fixtures, furniture and paint, can be removed and updated at a relatively small cost, but repairing a roof or updating electrical components can be expensive, out-of-sight upgrades.

6. Not Investigating the Neighbourhood – Do you know someone who has moved into a fabulous home, only to discover that there is a garbage dump facility two streets away? Many buyers have made hasty decisions when they find the home of their dreams, only to discover shortly after closing, that the neighbourhood did not live up to their expectations. During the pandemic times there were many buyers who moved to smaller towns only to find out later that they couldn’t work from home due to lack of reliable internet or even worse, having issues with drinking water. Moving to a new home may be a dream come true or it might become a living nightmare, so ensure you have done your research on the area, not just the house. You want to make sure both the house and the neighbourhood suit your lifestyle and that of your family.

7. Failing to look into first-time homebuyer programs: First-time homebuyer programs and government-backed loans can make homeownership much

more achievable. Learn more about available First-Time Homebuyer Programs.

You can avoid most of these mistakes as you’re searching for your future home by asking plenty of questions throughout the process. Don’t hesitate to use your real estate agent, one of our 911 Mortgage Brokers, friends, and family as resources. If you’re not sure what a term means, or how to handle a situation, ask.

We’re Happy to Help!