There’s a lot of excitement around buying that first home and finally realizing the dream of getting the keys to a place all your own. There are lots of plans to be made for creating that backyard oasis, colours to pick for the dining room and a wish list that includes custom cabinets for the kitchen. However, one of the most important boxes on your first time home buyer checklist needs to be avoiding costly mistakes that can stall or even shut down your mortgage plans.
Debt is one of the biggest offenders. With interest rates as low as they’ve been, some folks think they can load up on luxury items and still qualify for a mortgage. Problem is, that new car you’ve always dreamed about that would look great in the driveway of your new home might be the very reason you can’t get preapproved for a mortgage. Remember, there’s a debt-to-income ratio banks use to decide who gets a mortgage and having lots of debt before you apply isn’t a good move. The best first time home buyer tips here are about staying small when it comes to credit if you really want to own a home.
Speaking of cars, you wouldn’t buy one without performing some due diligence, without “kicking the tires” and doing what you needed to be sure you weren’t buying a lemon. Well, the same goes for your house and that means you should never skip the home inspection.
Trying to cut costs is a great way to prepare for those first few years as a new homeowner, but you want to know about any potential costly problems before you buy. A two to four hour search through the place in the form of a home inspection before you’ve signed on can save thousands of dollars down the road if there are big issues.
