Which Financial Errors are Most Common with First-Time Home Buyers?

Posted by on Friday, July 3rd, 2015 at 9:39am.

Home Planning

When you are a first-time home buyer, you don't want to make a mistake that will hurt your finances. It's common to make a few mistakes, but you can certainly keep them to a minimum. Here are a few of the top mistakes to make sure you avoid.

Mortgage Max Out

It may seem like a good idea, but it's not. You don't want to max out your mortgage as a first-time home buyer. This is dangerous and can make it hard to keep up with the payments.

Make sure you only take what you need for a mortgage and buy a home with a payment you can afford. Just because the bank qualifies you for a certain amount doesn't mean you have to take it all.

Choosing the Wrong Type of Mortgage

The wrong type of mortgage can make owning a home harder on you than it needs to be. Mortgages are not one-size-fits-all and the right type of mortgage can make a huge difference.

A 30-year-fixed-rate mortgage may seem perfect, but it may not be the right choice for you. It depends on your cash flow and your goals. Make sure you work with a trusted mortgage broker or lender willing to help you get the right mortgage for your needs.

Choosing the Wrong Home or Neighbourhood

Another common mistake first-time homebuyers make isn't completely financial, is choosing the wrong home or neighbourhood. This may not seem financial, but if you choose a home in need of repairs, it could quickly become financial for you. The wrong neighbourhood could also mean you spend more to get to and from work and to and from other places you need to go.

Make sure you know what you are getting into and make sure you get a home inspection done. This will help you to avoid any major repairs you cannot afford. It's also important to choose the right location for your new Edmonton home.

These are just a few of the financial mistakes many first-time home buyers make. Work with a professional real estate agent and you will be better protected from the potential financial mistakes you could make.

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