Here are some things that often cause trouble for buyers:
- Going shopping before meeting with a mortgage broker or agent. You want to know how much you actually have to spend, so that you don’t look at places outside your actual budget.
- Skipping the financing condition because you got prequalified. The prequalification is confirmation that you can pay the mortgage, but the bank still has to like the house. Even if you’re prequalified, you should always put in a condition on financing so that the bank has a chance to look at the house and be sure they want to lend money for you to buy it.
- Not paying attention to closing costs. There will be bills for property taxes, land transfer taxes, title insurance, and legal fees. Don’t assume what this will be; ask your real estate lawyer what they estimate so that you know what to expect.
- Forgetting about regular home maintenance costs. You’ll have your mortgage payment, but you’ll also have property taxes, insurance, utilities, and building maintenance. Don’t forget all of that when determining how much you can afford to buy.
Keep these in mind, and you will have a much smoother buying experience.