COMMON BUYER MISCONCEPTIONS - WHEN PURCHASING A PROPERTY, AVOID THESE MISCONCEPTIONS
YOU CAN START LOOKING AT HOMES BEFORE GETTING A MORTGAGE PRE-APPROVAL
To ensure that your financing doesn't fall through, make sure you receive a commitment from your lender. Shopping around without a mortgage pre-approval may result in heartbreak if you find out you cannot afford or put an offer on properties you love. To do a mortgage pre-approval, your lender will check your credit, and verify your employment and downpayment, so start collecting all the paperwork necessary for your qualification. We know great local mortgage brokers and lenders, so if you need help, we'd love to put you in touch with people we trust.
SPENDING RIGHT UP TO OR OVER YOUR MAXIMUM BUDGET
Closing costs are typically 1-2% of the purchase price, and while many fees are found in every transaction (e.g., taxes, lawyer fees, etc.), you may incur extra costs depending on the type of property you purchase and the area. Additionally, keep in mind that you may need to upgrade or fix certain areas of your new home, or you will need an unexpected repair not long after your purchase. Therefore, make sure you don't use up all your savings and budget to pay for closing costs, the down payment, moving expenses, and some extra money in case of urgent repairs.
YOU GET A BETTER DEAL WHEN BUYING A HOME WITH THE LISTING AGENT
Although the listing agent often knows more about the property you want to purchase, they are still working for the seller. This means that their job is to get the best purchase price and contingencies for the seller, not you. Therefore, purchase a house with a different agent who will work for YOU. Best part? You don't pay anything for a buyer agent's services!