Buying a property is a big step! It's best to be well prepared so that everything goes smoothly and without regret. These 7 mistakes to avoid will put all the chances on your side to live a great experience.
Going on a home tour without first determining your needs is a mistake that future buyers sometimes make. However, this step will help them immediately target the homes that suit them. This way, no time will be wasted.
Establish what is essential for you, for example a garage, a swimming pool, having services nearby or even the number of bedrooms, then do the same with your desires that are not essential to your happiness. And don't lose sight of these goals!
Another waste of time for future buyers is visiting properties without having a mortgage pre-approval. In fact, sellers sometimes refuse to sign a promise to purchase if the buyer does not have this official, up-to-date proof.
This is a document indicating how much the bank is willing to lend you for the purchase of a property. To obtain it, simply go to your financial institution, which will determine the amount based on your financial picture.
Please note that the pre-approval process may take a few days and you will need to provide several pieces of information and official documents, such as your income statement or proof of your down payment.
While the mortgage pre-approval is a good indicator of how much you can afford to buy a home, your financial advisor does not know all of your expenses. It's best to set up a budget yourself, to ensure that the property you want won't cause you financial hardship.
Also, future buyers should not forget expenses such as the Welcome tax, notary fees, municipal and school taxes, condo fees if applicable or moving expenses.
You should also take into account the possibility of inflation in the mortgage interest rate, especially in an uncertain economic market.
If you need a little help, your broker can help you make a simple calculation using the GDS (Gross Debt Service) ratio.
Another possible mistake is to neglect to read the seller's declaration or to read it in parallel. It contains all the history of the property for sale, such as renovations, water damage, etc. It is therefore very important and will allow you to better understand your future home. After reading it, you may even decide not to make an offer to purchase.
If you work with a broker, he or she will be able to highlight the important points in this document and explain them to you.
Sometimes, falling in love with a house can be a mistake! It may not meet all your needs, require more renovations than your budget allows, be less practical than another house, etc. In short, the important thing is to visit a few properties before making an offer to buy.
Future buyers must listen to their reason, not just their heart!
In a seller's market where there are many interested parties for the same property, some future buyers make the mistake of signing promises to purchase without an inspection, in order to speed up the process. Sometimes this choice can turn into a nightmare. Imagine if the inspector discovered thousands of dollars worth of damage? You could then renegotiate the purchase price or simply walk away.
A pre-purchase inspection is essential, no matter what the context, and even if the house is new. It is an expense of a few hundred dollars that is worth it!
If you are preparing to buy a property, turn to a RE/MAX broker who will be able to guide you and help you avoid possible mistakes.