Nobody wants to lose money! Yes! So today, we at Team Leading Edge decided to discuss the financial errors that first-time Edmonton home buyers make. It’s painful to hear whenever somebody talks about how they lost all their savings because of their home purchase or that they have defaulted on their mortgage.
Below is a short, concise list of things that you should avoid in order not to fall on this money traps.
Note: For a complete list of Edmonton homes for sale, visit our Edmonton MLS Listings.
MAXING OUT THE MORTGAGE. This is at the top of the list because this is the most common of financial errors first-time homebuyers make. Banks and mortgage companies will offer more money that you should take. You will run the risk of being tied to a mortgage that you can’t repay if something disrupts your cash flow.
Homebuyers forget to scrutinize their miscellaneous expenses when purchasing real estate. In the long-run, these leads to added pressure in their finances.
Avoid these mistake by simply keeping a level head when executing decisions and rememberto “live within your means”.
WRONT TYPE OF MORTGAGE. The widely used type of mortgage is a 30-year fixed-rate mortgage, but this should not be a one-size-fits-all kind of mortgage. The type of mortgage that you take out should highly depend on your goals and cash flow and best way to determine this is by talking to your local mortgage brokers. Lucky for you, we at Team Leading Edge have partnered with the Edmonton’s most reliable mortgage brokers. You can check them all here. Edmonton Mortgage Brokers
As a rule of thumb, it is better for first-time homebuyers to have a low down payment mortgage whilst possessing enough reserve money for personal/emergency purposes.
WRONG EDMONTON HOME. It happens. Despite your best intentions, you may still end up with a bad home. This home may need constant fixing or repairs to make it livable-that would mean constant loss of money for days, weeks or even months on end.
Avoid this error by not taking things at its face value. Don’t be fooled by simple renovations done by home sellers, it is best that you use a reliable home inspector to double check the condition of the home before you sign on the dotted line.
Good luck and remember to subscribe to this blog.
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