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Buying a home is a major milestone—but it’s also easy to get overwhelmed. Whether you’re a first-time buyer or upgrading to your next property, avoiding these five common mistakes can save you time, money, and stress. Here’s what to watch for and how to stay on the right track.
1. Skipping Mortgage Pre-Approval
Why It’s a Problem
Many buyers start house-hunting without knowing what they can actually afford. This often leads to disappointment or wasted time viewing homes outside their budget.
What to Do Instead
- Get pre-approved before you start your search
- Know your maximum purchase price and monthly affordability
- Strengthen your offer by showing sellers you’re financially prepared
Understanding your financial picture is essential. Read Why a Personal Balance Sheet Matters for Homebuyers and Investors for a smart financial planning approach.
2. Underestimating Closing Costs
Why It’s a Problem
Buyers often focus solely on the down payment, forgetting that closing costs can add up to 3–5% of the purchase price.
Key Closing Costs to Budget For:
- Legal fees
- Property transfer tax (PTT)
- Home inspection
- Title insurance
- Appraisal fees
What to Do Instead
Always factor in these additional expenses early in your planning process.
3. Letting Emotions Drive the Decision
Why It’s a Problem
Falling in love with a home can cloud your judgment. Buyers may overlook red flags or stretch their budget beyond reason.
What to Do Instead
- Set clear needs vs. wants before viewing homes
- Always conduct a home inspection
- Lean on your real estate agent’s objective insights
4. Not Researching the Neighbourhood
Why It’s a Problem
A home is more than just four walls, it’s the community around it. Failing to research can lead to issues with commute, schools, safety, or long-term resale value.
What to Look Into:
- Local school rankings
- Public transit and commuting times
- Future development plans
- Walkability and amenities
5. Working Without a Buyer’s Agent
Why It’s a Problem
Trying to navigate the market alone can lead to missed opportunities, poor negotiations, or costly oversights.
Why You Need Representation
- Access to exclusive listings
- Negotiation expertise
- Guidance through paperwork and due diligence
- You don’t pay the buyer agent’s commission,the seller does
New to the process? Explore our Buyer Guide to understand what to expect at each step of your homebuying journey.
Key Takeaways
- Mortgage pre-approval gives you clarity and bargaining power.
- Closing costs can catch you off guard, plan ahead.
- Rational decisions and due diligence protect you from costly errors.
FAQ: Common Questions About Buying a Home
1. What’s the difference between pre-approval and pre-qualification?
Pre-qualification is an estimate based on self-reported information. Pre-approval is verified by the lender and carries more weight when making offers.
2. Can I buy a home with less than 20% down?
Yes, but you’ll need mortgage default insurance if your down payment is under 20%. CMHC-insured mortgages are common in Canada for this reason.
3. Are home inspections mandatory?
They aren’t legally required but are strongly recommended. An inspection can reveal structural issues, safety concerns, or costly repairs.
4. Do I really need a buyer’s agent if I found a home online?
Yes, an agent does more than just find listings. They handle contracts, negotiate terms, protect your interests, and guide you through the process.
Ready to Buy with Confidence?
Avoiding these common mistakes puts you in a stronger position to find the right home at the right price. Whether you’re just getting started or ready to take the next step, we’re here to guide you with expert advice tailored to your needs. Start your property search in Coquitlam, Port Coquitlam and Port Moody.
Contact details
Sayed Najibi
Personal Real Estate Corporation
Phone: 604-649-6520
Website: www.sngroup.ca