Common Buyers' Mistakes
- Mistake #1. Not Getting Pre-Qualified for a Mortgage
Before looking for your
next home take the time to get pre-qualified by the bank or mortgage broker you
choose. This can save you hours of searching for homes in the wrong price range
or worse, purchasing a home and then finding out you don’t qualify for financing.
Pre-qualifying gives you peace of mind, helps narrow your search criteria and most
importantly, gives your RE/MAX agent a negotiating edge by being able to alleviate
the sellers concern over financing. The latter is especially important should a
competing offer surface.
- Mistake #2. Not Shopping For Mortgage Terms
Rates are negotiable! Banks will
sharpen their pencils to get your business especially if you have a good credit
rating and bring other business to them e.g. RRSP’s, general account, savings etc.
Posted rates should viewed as a starting point. You need to know what the best rate
is and this is usually done by get competitive quotes. Also, ask whether the bank
will cover appraisal fees, and about buy-out fees, penalties, payment options, portability
etc. The time spent can save you thousands of dollars over the life of the mortgage.
- Mistake #3. Not Using A Professional Real Estate Agent.
Your RE/MAX agent
can help you make a purchase with the least amount of problems. He or she can ensure
the price you pay is market value. They can offer expert advice on what to look
for, conditions to include, negotiation strategy etc. After all, they work for you.
- Mistake #4. Not Knowing The Full Cost Of Home Buying
Know all the costs associated
with your purchase. Consider the following costs: legal fees, transfer tax, property
taxes, new home landscaping, fencing, appliances, window coverings.