When buying one’s first home there isn’t a lot of room for error. Getting it right the first time can result in buyer’s remorse. It can also be quite expensive not to mention a headache and beyond stressful. Unfortunately, too many homebuyers – first-time buyers or otherwise- make rookie mistakes that usually prove costly down the road. Before starting on a home hunting expedition for a one bedroom apartment in Hamilton be sure to keep these rookie mistakes in mind before starting the process. Follow them, and the best years of your life will be even better thanks to living in a home that’s a perfect fit for your family.
Ignoring credit scores
Before starting the process of hunting for a one bedroom apartment in Hamilton or otherwise, know your credit rating. There’s no room for debate: if you don’t know your credit score there’s no point in searching. The better the credit score the lower your interest rates will be (lower credit scores result in higher interest rates). The lender you’ve chosen can assist you in figuring out a way to improve your credit score if interest rates are not ideal. It may take some time to improve the credit score if it’s a little too low. In the end, it’s worth the effort as it could save you a small fortune over the life of your home mortgage.
Big purchase while home hunting
Look, life happens. We can’t always anticipate when a car finally ‘gives up the ghost:’ unavoidable big purchases are going to happen. That doesn’t mean you should go out of your way to make one if you absolutely do not have to, though. When opening new lines of credit, your credit score may drop. It also diminishes the amount of credit available to take out for a one bedroom apartment in Hamilton. For those trying to raise their credit score, this does nothing but work against those goals. If a big purchase absolutely must be made, speak to your lender to tweak your home buying game plan.
Failing to understand one’s financial situation
This is one of the biggest sins homebuyers make. Too many potential homebuyers feel that just because they can afford the theoretical monthly payments and have the down payment on that one bedroom apartment in Hamilton, ON their financial standing is sound. This isn’t always the case, though. One of the first steps to take is to get pre-approved on a mortgage. Getting pre-approved lets you know which homes are in your price range and which ones you need to avoid. It also tells sellers that you are serious about buying the home and have the financial security to do so. This could put you ahead of other prospective homebuyers for properties you look at and give you that edge you need to secure that one bedroom apartment in Hamilton.
The importance of your financial standing doesn’t end with getting pre-approved, though. Many homebuyers forget to factor in other expenses that come with buying a new home. One of the biggest expenses is the closing costs: home inspections, property valuations, and a provincial land transfer tax just to name a few. It’s also important to consider the monthly expenses of owning a home in general. Create a budget and know exactly what you will be spending before and after the home is purchased.
Putting emotions before logic
Entering into a home that seems perfect for the first time can be blinding. It may seem like a perfect fit, you begin imagining all the different things you can do with the property, and before you know it you feel like, ‘this is the home I was destined to buy.’ Blame it on wanting to own a home and stop the search, or chock it up to being excited about the pride of home ownership. Whatever reason you give, never put your emotions before what your brain is telling you. It’s too easy to get caught up in the whirlwind of finding what seems to be the perfect one bedroom apartment in Hamilton and go over budget. It’s disappointing to know that the home you love is out of your reach. Know what’s worse, though? Moving into that dream home only to have to move out because it’s unaffordable. Rely on logic – not emotions – to ensure you make a sensible purchase.