1. NOT KNOWING WHAT THEY CAN AFFORD BEFORE MAKING AN OFFER
A pre-approval is the best way to avoid this scenario. Always speak to a mortgage broker or to your bank to get an idea of what you can afford based on your current income and debt.
2. NOT KNOWING WHO THE REAL ESTATE AGENT REPRESENTS
If you do not have a representation agreement signed with your real estate professional then I am sorry to tell you, they represent the seller! Signing a BRA (Buyer Representation Agreement) ensures that your Real Estate agent is looking out for your best interests! Many people DO NOT realize this.
3.CHOOSING THE WRONG MORTGAGE
The wrong mortgage can cost you THOUSANDS OF DOLLARS in interest and taxes, as well as penalties if you want to pay more or pay your mortgage off early. Consult an accountant before selecting your mortgage.
4. NOT FINDING ISSUES WITH THE HOME BEFORE BUYING IT
A recommendation I make to all my buyers is to have a professional home inspector review the property before the sale is firm, this way you can find out about any VISIBLE issues with the property before it is a firm deal. In a market like Toronto right now, offers are being placed for homes firm due to bidding wars, an excellent way to still get a home inspection done is to schedule one with a showing before any offer presentations.
5. NOT UNDERSTANDING HOW CREDIT CAN AFFECT THEIR ABILITY TO PURCHASE OR REFINANCE A HOME
Always speak to a mortgage professional in order to review and prepare your credit file before you buy a home!
