Mortgage rates are currently quite low, which means that it is a great time to buy a home. Before you jump in and make an offer, however, it is important to educate yourself as much as you can about the home buying process. After all, buying real estate requires a major financial investment. It is important to know that you are spending your money wisely. To that end, here is a list of common mistakes that you should avoid when buying Edmonton real estate:
Mistake #1 – Stretching Your Budget Too Far
Don’t make the mistake of spending more money than you can afford. It is easy to fall into the trap of only considering the amount of your mortgage payment when you are shopping for a home. Owning a property, however, involves many other expenses ranging from homeowner’s insurance and property taxes to upkeep and maintenance. If you fail to take these expenses into account and stretch your budget too far, it could leave you struggling to keep up with your payments.
Mistake #2 – Not Making A Large Enough Down Payment
Today, it is possible to qualify for a loan with an extremely low down payment. Although this may be tempting, you should try to put as much money down on the property as you can. If you don’t put at least 20% down on your home, you will wind up having to pay for private mortgage insurance. This extra cost can dramatically increase your monthly expenses.
Mistake #3 – Failing To Get A Home Inspection
Before you buy a property, it is absolutely essential to have it inspected by a qualified professional. Even homes that look absolutely perfect can have hidden problems lurking beneath the surface. The last thing that you want to do is buy a property only to find out that the electrical system needs to be replaced or that it needs a new roof. These types of problems are extremely expensive to deal with. You can avoid buying a property that needs a lot of work simply by having it inspected before you make an offer.
These are some of the most common mistakes that people make when buying Edmonton real estate. Being aware of them ahead of time can help ensure that you make a smart investment by buying a property that is not only affordable but that also is in good condition.