5 Most Common Mistakes First Time Home Buyers Make in Calgary!
This article is a list of 5 most common mistakes that home buyers make in Calgary. If you are buying a detached house or even an apartment or semi-detached condo in Calgary, this article is for you!
1) Not Having Mortgage Pre-approval in Calgary.
You may have a mortgage pre-approval in a different province like BC or ON, but they may not give a mortgage to buy a home in Calgary, AB!
We had a situation where we have placed an offer, waived the inspection condition just to find out that the lander in Vancouver wouldn’t give the mortgage for Calgary. It is extremely stressful when you have just one week to find another lander / mortgage broker and risking of not getting your dream home.
Why is it important to get a mortgage pre-approval?
- You are one step closer to becoming a home owner.
- Provides confidence in your ability to afford the house.
- Provides confidence in your ability to obtain financing.
- Reduces the timeline and gives you a better chance of securing a loan fast.
2) Not Knowing Their Budget.
Buying a home in Calgary is getting more expansive especially due to the most recent events.
Why is it important to know your budget?
You can now choose:
- Neighborhood you can afford.
- Property type you are searching for.
- Ownership type that suites your budget.
- Age of the home and renovations done.
- Size of your new home.
The list can go on and on! It is important to know the following:
- How much down payment do you have?
- What is your mortgage pre-approval?
- How much money you have left after the down payment?
- How much are your closing costs?
3) Not Hiring a REALTOR®!
One of the biggest mistakes I see on the market is people trying not to hire a Realtor in Calgary. Real Estate Agents can help you tremendously!
Why should you hire a REALTOR®?
Realtor help buy and sell houses on the daily basis, for most people it is ones or several times in a life time experience.
- Real Estate Agents are experienced and trained professionals with a team behind them.
- Guidance and price management.
- Negotiations and speedy contract closure.
- No stress / hustle experience.
- It is free for you because seller (most of the times) pays the commission of your agent.
Buying a home can be a very relaxed experience with a Real Estate Agent. Realtors will do a market analysis to identify if the property is priced correctly to protect your interest and make sure you home is not overpriced.
Going without a Realtor wouldn’t be in your best interest, because you wouldn’t know a lot of things about real estate, as someone who does it for a living.
4) Being Too Choosy / Picky.
Huge mistake is to be too picky about your fist home. It is a first home and it can’t be perfect and shouldn’t be. It could even be unrealistic due to the budget / mortgage constraints.
What is important for you?
- Age of the home?
- Structure type?
How to overcome it?
- Make a list of things that matters to you.
- Evaluate that list by what is more important by built points.
- Look at your budget and decide what you are willing to scarifies.
5) Not Considering the Future.
Most of the time more mature home buyers keep it in mind. Most of the people I help buy a home in Calgary forgets about it.
What is your future plan?
- Getting married?
- Kids and growing family?
- Brining your parents over?
- Living with room mates?
- What are the amenities in the area?
It is extremely Important to ask yourself the right questions, to know where you are planning to buy a home in Calgary!
Just keep in mind, it is your first home and not a dream home. First home helps you become a home owner and living a great life. Dream home is usually not the first home you buy.