We all know, buying a home is part of the North American dream - and for thousands of families in the Halton area, that dream becomes a reality every year. Unfortunately, for every dream that comes true there are those that silently fade out. (Which doesn’t have to happen for many!) Home buyers, especially those buying their first house, can make many mistakes in the process if they aren't careful or don't have a good resource (such as a professional and knowledgeable Realtor®) to go to for advice.
Most of today’s buyers begin their home search online (Probably like you are doing right now), and may get wrong information, get discouraged or even led down the wrong path. That is why it’s crucial you start with a professional who will have your back throughout the whole process.
Here are 4 critical mistakes that many Halton & Hamilton home buyers make when house hunting.
First, they buy a home they simply cannot afford or do not need. Have you heard the term McMansions before? It refers to all the huge houses that seem to pop up everywhere nowadays. Just how many square feet does a family need? All too often new homeowners, and even seasoned veterans, can fall into the trap of buying way more house than they will ever need. Sometimes keeping up with the Joneses may not be the best thing for your family. A lot of time people feel they need to compete with their friends or family or even their neighbours and have the biggest or nicest house. If you are looking for the right home, it’s important to work with a local professional Halton & Hamilton REALTOR® who knows the area, knows the prices and will know how to find the right house for your needs.
Second, many Halton & Hamilton home buyers fail to lock in their interest rates when buying a home. Interest rates change on an almost daily basis it seems. Some home buyers like to "test the waters" and see how long they can go before locking in a rate – Don’t get me wrong, it can definitely work sometimes, but it can come back to bite you if the interest rates suddenly jump. Shop around for the a good mortgage rate and when you find one you want ask them about locking in the interest rate and what that means for you. Depending on the type or mortgage, you can get a 30-60 day rate hold to ensure you get the best rates guaranteed.
Third, a lot of new Halton & Hamilton home buyers don't understand the complicated mortgage process and all the terms and rules of the loan. You are getting ready to sign off on one the biggest purchases you will probably ever make - do you realize what you are signing? Having a professional mortgage broker or lender is crucial, as they will take the time to go over the entire mortgage paperwork with you and explain all your options BEFORE you sign on the dotted line. And don’t be afraid to ask your mortgage broker or lender lots of questions about the terms of your loan. Most importantly, realize that you are signing a long-term commitment with serious financial complications, so ensure your Realtor® and mortgage broker go through everything with you clearly.
Finally, many Halton & Hamilton homeowners both new and old don't truly understand all the insurance options available to them.
How many of you reading this article believe that your house is covered if a torrential rainfall hits and you get flooded? Unless you've specifically purchased flood insurance then you are out of luck – “regular” homeowners insurance typically doesn't cover floods! You shopped around for a mortgage, but did you shop around for the right homeowners insurance?
Do you understand your policy limits and deductible? Are you covered for a place to stay if a fire strikes your house? All these questions and more should be asked of your insurance agent before you buy your next home in Halton & Hamilton. Make sure that you are covered for the unexpected before you set foot in your new house.
Buying a new home can be a fun, exhilarating process. Nothing in the world can quite beat the feeling of owning your own home. Take a few minutes to understand the responsibilities of owning a home and you will be better prepared to have your own piece of the North American dream.
If you would like more information about anything covered in this article or would like to talk to some of the trusted mortgage and insurance professionals we deal with - email or call us today!
If you would like to see the latest Halton & Hamilton homes for sale or would like a personal tour of homes please visit www.ThePremierHomeGroup.com
We hope this information was helpful to all of the readers of our blog. There are many more great articles to come! Be sure to share with your friends and family!
The Premier Home Group
Ryan Smith & Lindsay Russell
Keller Williams Edge Realty, Brokerage
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