Top 5 Mistakes To Avoid When Buying A Home In Calgary
Top 5 Mistakes To Avoid When Buying A Home In Calgary
We’ve put together a trusted list with advice from top Calgary Realtors to make your home buying process seamless. Here are the top five mistakes to avoid when buying a home in Calgary.
1. Searching for Homes Before Getting Pre-Approved
Before starting your home search we advise you speak to a Mortgage Broker (or two). Find the best rate you can and get pre-approved. It’s difficult to shop for a house without knowing how much you can spend. This saves you time, money and potential disappointment. It ensures all the homes a Realtor shows you are homes you can get financing on.
Choose a trusted Mortgage Broker that will work in your best interest. Dolce Real Estate has a few trusted Mortgage Brokers we always recommend. Contact us if you’d like our Mortgage Broker’s contact information. Also, note that pre-approvals are generally good for between 90 to 180 days, so you can inquire about mortgages very early in your home hunting process.
2. Not Keeping Tabs on Your Credit
Buying a home means applying for a mortgage, which means a credit check for approval. For home buyers with a down payment of 20% or more, the government introduced a new mortgage qualification rule that makes approval slightly more strict. As soon as you start thinking about the possibility of buying a home, you should start being vigilant of your credit use.
To make the process of being approved for the home of your dreams more smooth:
- Avoid using more than 30% of your credit limit. Big purchases can flag you as high-risk borrowers.
- Pay your credit on time, every time. This will ensure you’re marked as a responsible borrower.
- Don’t open more lines of credit, this means avoid applying for new credit cards or loans.
- Don’t buy a newly financed vehicle. This diminishes the amount of money the bank will lend you since you’re technically in debt for the car.
- *Don’t change jobs. While this doesn’t directly affect your credit, it can affect your mortgage pre-approval.
3. Not Hiring a Licensed Realtor
Working with a licensed Realtor protects you, puts information at your fingertips and provides trusted guidance through every step. Despite the common misconception, the Realtor on the other end of the deal is not obligated to work for you. They are working in their own contracted client’s best interest. If you don’t know your rights or don’t have up to date knowledge on the current practices this could leave you with more costs than there would have been in hiring a Realtor.
Signing with a licensed or registered Realtor is a must for quality service and legal protection. Under their license, they are committed to follow procedures and provide professional quality service. Additionally, they have access to the Board MLS System which expands their reach in presenting your listing or in searching for the perfect one for you. All of Dolce Real Estates Associates are fully licensed Realtor. Meet Our Realtor Team.
4. Not Asking About Your Home Buying Options
Another benefit of working with a Realtor is that they have plenty of experience working with all types of buyers, at least at Dolce Real Estate. Ask your Realtor about the different options for down payments, especially if you are a first-time homebuyer and/or if you have RRSPs saved.
Currently, the government of Canada has issued a first-time homebuyers incentive that you may be eligible for. Additionally, different down payments qualify you for different pre-approval methods at different stress levels. There are also options for putting in deposits on properties especially if you want to pay a large portion upfront. Rather than paying a large lump sum, you can put two separate deposits at varying stages of the contract completion.
Don’t be afraid to ask your Realtor. All questions are valid questions.
5. Idling on a Decision
Hesitating to make an offer can be risky. Often times a great home, at a great price will have multiple offers on the table. At Dolce, our policy is to contact every Realtor that’s been through the listing before accepting any offer on the listing. However, most Realtors don’t practice this. This means that the home you are eyeing might be in the process of accepting an offer while you’re idling on the idea.
If you’re interested, tell your Realtor so they can contact the listing Realtor to ask if any offer has been on the table. Factor in the current market type (buyer’s or seller’s market) to calculate a reasonable timeframe to decide when or if you’ll make an offer.
Lastly, if you have hesitations tell your Realtor right away. They’ve likely dealt with the same concerns multiple times and have systems to avoid the situation you’re fearing. A common hesitation stems from the fear that an offer is final, but a Realtor can walk you through various ways in which an offer can be withdrawn unpunished.
You wouldn’t invest your money in a stock you knew nothing about (hopefully). Don’t invest your money and personal time in attempting to learn the endless details of the home buying process. Talk to a Realtor as soon as you’re considering buying or selling, no matter how far down the road. A Realtor can guide you on the steps you should be taking to prepare your credit, search for a mortgage rate, make the best offer, and a Realtor can answer any of your concerns along the way.
Have questions about these tips? Drop a comment, send us an email, or give us a call/text at 587-229-7108.
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