H Mag - The Handy Mag for Home, Hardware and Home DIY Jun. 2014 | Page 10

10

10 Mistakes
First-Time
Homebuyers
Make

Buying your first home can
be a overwhelming venture.
If you’re considering buying a
house, then check our list of
what not to do.

1. Not Getting Qualified for a Home loan First
Shopping for a home is a long, difficult process and an
emotional rollercoaster. So don’t go too far down this road
until you’re qualified for a home loan. There is no point
shopping for a house until you know how much you can
afford. And there’s no point in getting attached to a home
that’s out of your price range.
2. Buying With Your Heart—Not Your Head
The biggest trap of all. A home is a huge investment of
money, time, and labour. Consider every aspect of the
purchase with a cold, hard eye. Be brutally honest with
yourself.
3. Doing Due Diligence on the Neighbourhood
You’ve investigated the school district in which
your potential new home resides, looked up crime
and other key statistics, and even strolled through
the neighbourhood, stopping to talk with people
walking their dogs or working in the yard. But as we
noted recently, the strange and unusual quirks of a
neighbourhood wait to bite an unsuspecting homebuyer.
Put in the time to find out whether the area suffers from
excess highway noise or has industrial equipment such as

By Roy Berendsohn

water-tower pumps nearby.
4. Not Understanding Closing Costs
You’re not just paying for the house—
nothing is ever simple when buying a home.
Carefully read and understand the sheet
provided to you that explains closing costs. For example,
you may have to reimburse the seller for fuel oil or
propane. There may be fees from a surveyor, a title search
company, and a notary. Municipalities can levy a fee for
someone to come out and look at the house and check on
its sidewalk and chimney. You get the idea. It seems that
everybody and anybody who in some way has something
to do with that house will get a cut of the action.
5. Not Having Cash on Hand for Unexpected Expenses
Weird things will go wrong with your home. Get used
to it—it’s part of being a homeowner. So be sure to
have enough cash to handle surprises such as broken
parts or to deal with seasonal pr ؛[\