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4 Common Mistakes to Avoid Before Buying a Home

Blog by Claire LeLacheur | May 7th, 2008

There are four common mistakes that, as a Realtor, I see Buyers make all the time! I wonder why do they waste their time? After all time is all we really have.

1. Single Women Waiting for Mr. Right

If you are single and always thought that you would wait for a boyfriend or a husband to purchase a new home, you may want to rethink your plan. A study released by Royal LePage Real Estate Services in 2004 shows that over 51% of first time home buyers in Canada are single women. Staggering. We have seen a marked change in women over the past 50 years. Single women today are more independant, more in control of their finances, and making more income then our mothers did. Now more then ever it easier to buy your first castle on your own. It may be scary but think of the wonderful day when you can be roomate free, and know that your toilet seat is down!

 2. Having Too Much Debt

Over the past two weeks I have received 10 calls from credit card companies prospecting for a new credit card to add to the pile. When I tell them I already have a credit card and would not like another, they cooly reply, having another credit card is okay! Sadly, if you want to buy a home, having too many credit cards is not okay, in fact it can be hazardous to your overall purchase price. Mortgage brokers look at your overall debt versus your overall income. If you have too many credit card payments taking a chunk out of your salary every month, then the purchase price that you will be approved for will be lower or you may even be declined. Visit a mortgage broker and get them to consolidate your debt into a lower payment and get yourself on the road to home ownership.

3. Not Realizing the Extra Costs of Home Ownership

While out shopping for a home many buyers don't realize that your mortgage payment is not the only thing you must budget for every month. Regardless, if you are shopping for a home or a condo you must also work into your budget home or contents insurance, property taxes, and mortgage insurance. If you are condo shopping you must also budget for your monthly strata fees.

4. Not getting Pre Approved by a Mortgage Broker Before you Start Shopping

Almost 75% of Buyers I see out there today wandering around from house to house vainly trying to find the best one, have not bothered to get pre approved. It would be in your best interest! Not getting pre approved before you go house shopping is like going to the grocery store without your wallet. Getting pre approved will give you realistic price point to look for when you are shopping. It will also illiminate wasting your time, the Sellers time, and the Realtors time when you find out that you can't afford your dream house that you stumbled upon. Do yourself a favor and get preapproved!