5 house hunting errors to avoid

Looking to buy a home? House hunting is an exciting, but often stressful experience. Whether you’re a first-time buyer or repeat home owner, the process can always have some challenges and obstacles. To help you navigate the journey smoothly, here are five common house hunting errors to avoid!

#1 Not getting a mortgage pre-approval

One of the biggest mistakes potential home owners make is not getting a mortgage pre-approval before starting their search. A mortgage pre-approval provides a clear picture of how much you can afford and shows sellers that you’re a serious buyer. Without a pre-approval, you might fall in love with a home only to find out that you can’t secure financing for it. Additionally, in competitive markets, sellers are more likely to accept offers from pre-approved buyers, which gives you a significant advantage. To avoid this error, meet with your lender early in the process. Gather your financial documents, understand your credit score, and discuss your loan options. Remember, a pre-approval is not a guarantee of mortgage financing! However, it tells you where you stand in the market, which will give you a clearer picture of your purchasing power.

#2 Going over budget

It’s easy to get carried away when house hunting. You might find a property that ticks all your boxes but exceeds your budget. However, stretching your finances too thin can lead to long-term stress and financial instability. When determining your budget, consider not only your mortgage payments but also property taxes, insurance, maintenance costs, and utilities. It’s crucial to factor in these additional expenses to get a realistic picture of what you can afford. Stick to your budget by creating a list of must-haves and nice-to-haves. Be prepared to compromise on non-essential features to stay within your financial limits. Remember, a home should be a place of comfort, not a source of financial strain!

#3 Rushing into an offer

In a hot real estate market, it can be tempting to rush into making an offer to avoid missing out. However, making a hasty decision without thoroughly evaluating the property can lead to major issues. Take the time to research the neighbourhood, schools, and amenities. Visit the property at different times of the day to get a sense of the noise levels and overall environment. Speak with neighbours if possible to gather insights about the area. Additionally, compare the property to similar homes in the neighbourhood to ensure you’re making a fair offer. Rushing into a decision can also lead to overpaying, especially if you’re competing with other buyers. Patience and due diligence are key!

#4 Skipping a home inspection

Skipping a home inspection is one of the most critical house hunting errors you can make. Even if a property appears to be in excellent condition, hidden issues could be lurking beneath the surface. A professional home inspection can reveal problems with the foundation, electrical systems, plumbing, roof, and more. Identifying these issues before closing can save you from costly repairs down the road. It also gives you a chance to negotiate repairs or a lower price with the seller, or walk away from the sale. Never waive the home inspection, even if the market is competitive. The short-term gain of securing a property quickly is not worth the potential long-term consequences.

#5 Not using a mortgage broker

Finally, don’t overlook the benefits of using a mortgage broker. A mortgage broker acts as an intermediary between you and potential lenders, helping you find the best mortgage rates and terms to suit your financial situation. Brokers have access to a wide range of loan products and can often secure better deals than you might find on your own. We can also save you time by handling the paperwork and communication with lenders. By not using a mortgage broker, you miss out on valuable advice and better mortgage options. A broker can help you navigate the entire buying process, ensuring you get the most favourable terms possible.

House hunting is a significant financial and emotional investment. By avoiding these common house hunting errors, you can make the process smoother and more successful. Remember, be sure to reach out to your mortgage broker to give yourself the best experience possible. Happy house hunting!

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.