The dynamic real estate market of Calgary can cause potential pitfalls for first-time home buyers. It is important to avoid some common mistakes to save you from significant stress and money.
Some of the top mistakes the first-time buyers make in Calgary are-
Skipping Pre-Approval: One of the most common mistakes first-time buyers make in Calgary is jumping into house hunting without understanding their true budget. A pre-qualification is an approximate estimate whereas pre-approval from a lender is an in-depth assessment of the financial health, indicating the maximum mortgage amount you qualify for. Otherwise, you will approve a home that is out of your budget or make an offer that falls through due to financing. To avoid this common mistake it is advisable to work with a professional mortgage broker for First-Time home buyers in Calgary who will help you get fully pre-approval for a mortgage. This will make your offer more attractive to sellers, allowing you to move quickly when the right home comes along.
Underestimating the added costs: One of the most common tips for first-time home buyers in Calgary by the professional mortgage advisor is not to overlook substantial additional costs like land transfer taxes, legal fees, home inspection costs, appraisal fees, moving expenses and immediate maintenance or renovation needs. A mortgage specialist will create a comprehensive budget including all the closing costs and emergency fund for unexpected post-purchase expenses. It is advisable to set aside up to 4% of the purchase price for closing costs.
Foregoing a Home Inspection: When buying a home in Calgary, some buyers are tempted to waive home inspection to make their offer more appealing. A home inspection may uncover major plumbing or electrical issues, structural issues, roof damage or other costly defects. It is thus advisable to make an offer conditional on a satisfactory home inspection. A reputed home inspecting service provider can provide a detailed report, ensuring you can negotiate on repairs or even walkways. A good mortgage specialist will connect you with a professional home inspector to ensure accurate home inspection data.
Researching Neighborhood: Among the many mistakes of Calgary home buyers is not doing research about the neighbourhood. This leads to anguish even if your home is beautiful. First-time buyers focus solely on the property itself, neglecting to research factors like proximity to the urban infrastructural facilities like schools, public transport, noise level, and future developments. A good mortgage broker will do thorough research on the neighbourhood by visiting at different times of the day. They will talk to the residents, research local schools and crime rates and understand future development prospects that could impact property values or livability.
Dealing directly with seller’s agent: Many first-time real estate buyers in Calgary deal directly with the seller’s agent to save money. However, it must be noted that the seller’s agent is loyal to the seller. Thus it is advisable to work with a dedicated mortgage advisor with a strong understanding of first-time buyer needs and who specializes in the Calgary market, helping you make informed decisions.
By being aware of these common mistakes and taking proactive steps first –time buyers in Calgary can enjoy a hassle-free and successful journey of home ownership. When seeking How to buy a house in Calgary for the first time, it is advisable to work with an experienced mortgage advisor.