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Buying a home or someone you know is? 5 BIGGEST mistakes to avoid.

General Angela Calla 16 Feb

Buying a home is a huge investment, so you don’t want to complicate the process with errors. There are many things that can make your first home buying experience feel overwhelming, but learning how to overcome the obstacles will alleviate some stress and headaches. Here are the top five mistakes new home buyers make, and how you can avoid them.

1. Not Becoming Pre-Qualified

Getting pre-qualified for a mortgage allows you to understand the home prices you can afford.  In today’s market it’s a luxury to qualify for a variable rate mortgage which means you will qualify for less house in most cases. Understanding this means you won’t be searching above your means. It also proves that you’re a serious buyer. When you’re pre-qualified, you may place a bid immediately after you find the perfect home. Also, it gives a real estate agent a negotiating edge over other bidders. This involves providing income & down payment confirmation upfront in the application process. It’s important not to change your status in the meantime read: 9 ways to squash your mortgage approval  You STILL have to place subject to financing on your home, as the lender will require to approve the property even if they have approved you as the borrower. Remember they always reserve the right to ask for more information where they deem necessary at any point.

2. Not Understanding the Total Cost of Buying a House

Besides the face value, there are numerous costs associated with buying a home. One of the most expensive is closing costs. Normally, you’ll need up to 2.5 percent of the purchase price. This goes toward land transfer tax, property tax, property insurance and moving costs. Also, there’ll be costs associated with the home itself. Furniture, landscaping, and other renovations will require even more money. The biggest mistake home owners do not consider is strata fees and property taxes will only go up. If you own a detached house, you should still be putting money away each month for maintenance you will need down the road. People often think the mortgage rate is the most important factor when getting a mortgage. Actually it’s the terms the terms that outweigh the rate & lead to the lowest cost of homeownership. An example of costly exit fee’s that clients are not aware of & fall victim for an attractive rate on a 250k example that can really set you back if you deal with the banks directly on your own:

3. Not Requesting a Home Inspection

It’s extremely important for you to make an offer conditional on a professional home inspection. You certainly don’t want to purchase a home that’s filled with defects. If the results identify problems, you’ll be able to negotiate a lower price to offset repair costs.

4. Not Choosing the Best Payment Schedule

Depending on how much you can afford, it’s best to create a custom mortgage payment schedule. Paying a mortgage off quickly will save on interest. You can save a great deal of money by selecting a shorter amortization time frame. Even increasing the amount placed on a monthly payment will make a big difference in the end. However, longer amortization lowers the payments each month. This allows you more cash flow for fun things. Do not get fooled by an attractive rate, or bundle pricing see: costly mistakes we help you avoid & Essential questions for your mortgage provider )

The standard home mortgage has a 25-year amortization period. To qualify for a longer time period, it will be necessary to make a larger down payment. The maximum time allowed is 30 years.

5. Not Using YOUR OWN Qualified Real Estate Agent

When you’re buying ANY home, it’s essential to consult with a professional real estate agent. One that ONLY has your best interest in mind. The listing agent of a house as well as developers/builders representative is CONTRACTUALLY obligated to work in the benefit of who hired them to get then the highest price. DO NOT BE FOOLED BY NON DISCLOSURE. These experts will work for you and make sure you’re paying a fair price. Also, they offer advice and will be able to locate homes that fill your individual wants and needs. When entering into a contract, real estate agents known what terms are necessary to include. Since they have your interests at heart, they’ll be able to negotiate the best deal. They’re the most important tool when it comes to any home buying. Listen here to Angela Calla & Rob Boies on CKNW The Mortgage Show interview here: and see more at

After reviewing the common errors of new home buyers, it’ll be simple to get through the process without problems. You’ll be able to enjoy your dream investment and pay the mortgage without financial stress.

Angela Calla, Mortgage Expert, AMP of the Year in 2009 and Host of The Mortgage Show on CKNW Saturday’s at 7pm. One of the most influential people in the mortgage industry for her sheer volume of people she helps save money on their mortgage, contributions she makes by consulting with Canadian’s national & regional lenders, insurers and media contributions. She and her Port Coquitlam, Port Moody & Vancouver team are here to help you personally at 604-802-3983 or