10 Critical Mistakes
Avoid 10 Critical Mistakes that could cost you thousands of dollars in the housing market.
1. Lawyers/Notary:
Be sure to check into your legal fees (separate from disbursements). We will be able to suggest a number of reliable lawyers.
2. Mortgage Pre-Approval:
A pre-approved mortgage can be done for at least 90 days FREE. As well, you can often negotiate your rate with the lender.
3. Inspection:
Be sure to have the property you are buying inspected by a qualified home inspector. The cost is about $300 and is money well spent for peace of mind. We can recommend several reputable firms.
4. Mortgage Options:
On the mortgage you will save the most with an accelerated bi-weekly plan and if you double up one payment per year.
5. Down Payment, First Mortgage
When you have a down payment of close to 25%, it is usually less expensive to arrange a conventional first mortgage and save on CMHC insurance fees.
6. Purchasing Strategy
Avoid buying the most expensive house on the street. The most advantageous situation is to buy the worst home in a good area rather than the best house in a poor area. "Location, location, location" is still true.
7. Trust Your Realtor's Advice
Avoid "low-balling" your initial offer, as sellers tend to counter closer to listing price if they feel insulted.
8. Move in and Stay
Try to stretch to the maximum you can afford to avoid another future purchase and save on property transfer tax, legal fees, mortgage discharge fees and real estate fees.
9. RRSP Purchase Benefits:
Use your tax credits to the best advantage by placing up to $20,000 per person of your down payment in a short term RRSP to be held for at least 90 days or until closing.
10. Moving Costs:
Look into moving mid-month. You will find great specials from the moving companies.
More Buyer's Info:
Property inspection is a crucial step in the buying process. Click here to read our article on selecting a Property Inspector, or contact us now if you have any questions about buying a home in Vancouver.