Are you buying your first home? Here are 4 common mistakes made by first-time home buyers and how to avoid them.
As a first-time home buyer, signing the dotted line at the bottom of a mortgage agreement can be truly exciting: it’s the first step in starting a family household, transitioning into adulthood, and securing a long-running investment.
However, it’s really important to protect this investment, and one of the best ways to do this is by purchasing mortgage life insurance. This is especially important if you are the primary breadwinner, as a mortgage life insurance will allow your loved ones to:
- continue living in a mortgage-free house for as long as they want
- cope financially during life’s most difficult moments
- have peace of mind, knowing they’ll always have a roof over their heads
- spend your insurance funds in a responsible and beneficial manner
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At AIME, we have designed 20/20 Mortgage Life Insurance, a flexible, affordable, and transparent product that can be customized to suit all your unique needs.
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4 Common Mistakes Made By First-Time Home Buyers
When you begin the process of buying a home, you’ll quickly discover that there is nothing cheap about it. With the down payment, the home inspection, home appraisal, and closing costs, you can easily diminish your savings before you even receive the keys to your new home.
Such expenses can be especially difficult for first time home buyers to control, but by educating yourself, you can avoid some common mistakes and potentially save yourself a great deal of money.
Here are 4 most common mistakes first-time home buyers make that you should be aware of:
1. Overspending
While lenders determine affordability based on your tax documentation and credit report, sometimes you’ll be approved for a loan larger than you can afford. Rather than accepting this, be smart and stick to your original price range.
Why? Splurging on a house can be exciting at first, but this can quickly turn to worry once the bills start rolling in.
A big house typically equals expensive utilities which can:
- affect your disposable income
- complicate your financial goals
- make it difficult to build up an emergency fund
2. Skipping the Home Inspection
Home inspections are not required when buying a home and some sellers actually try to rush the process and discourage an inspection. But buying a house without having it inspected can be very risky.
Why? Especially if it’s an older home, there may be serious problems that can exist with the:
- foundation
- wiring
- plumbing
- roof
A professional home inspector can identify any issues before closing, and you can then ask the seller to fix them. Remember: If you buy a home and skip the inspection, you’ll be financially responsible for any problems that arise after closing.
3. Not Visiting the Property Multiple Times
While there’s nothing wrong with bidding on the first house you see, it’s important to visit the property at least twice before submitting your offer. Remember: once you sign those closing papers, there’s no turning back.
After your initial visit to the home, you should consider driving through the neighbourhood during the weekends and/or evenings. This can help you determine whether or not the area is a good fit for you and your family.
4. Not Working with a Buyer’s Agent
While you don’t need an agent to buy a house, working with such a professional can be very helpful, especially for first-time buyers.
A buyers' agent can:
- guide you in the right direction
- help negotiate your bid
- counter an offer
- organize the closing offer
Buying a home for the first time can be a difficult and overwhelming process, and having an expert by your side can make the whole thing move much more smoothly.
Call Today
Are you planning to buy your new home? Find out more about how our mortgage life insurance products can help protect your investment and your family’s financial security by contacting us at 1-844-974-2020 or fill in our online contact form.
