Purchasing a home can be an exciting process, but it is important to avoid making rushed decisions. Instead, keep these do’s and don’ts in mind when shopping for a home and mortgage to make your purchase go a lot more smoothly and to plan.
Do Learn About Different Types of Mortgages
There are a lot of different types of mortgages out there, so you shouldn’t just settle for the first thing that your lender offers you. Instead, learn more about variable rate, fixed, split and other types of mortgages and the advantages and disadvantages of each. Being properly informed and taking your time in making your decision will help you choose the right mortgage for your purchase.
Don’t Just Talk to One Bank
If you have a personal relationship with a certain bank or have just gotten approved for a mortgage, you might be tempted to sign up for a loan right away. However, it’s a better idea to talk to different lenders to find out what is available.
Do Learn About Grants
Learn more about the First Home Owner’s Grant and other grants before making a purchase; you can save a lot of money that way.
Don’t Try to Do Everything Yourself
Purchasing a home can be a long and grueling process, and things can be made even more complicated if you don’t know what you are doing. It is better to work with professionals every step of the way if possible.
Do Pay Attention to Your Finances
Once you have gotten emotionally attached to a certain home or get really excited about becoming a home owner, it can be easy to get yourself into a loan that you really can’t afford. It is best to sit down and make a budget to determine exactly how much of a home loan you can afford; then, you can guarantee that you don’t get yourself into a bad financial situation with your purchase.
Don’t Expect Your Loan to Cover Everything
Unfortunately, your loan isn’t going to cover all of your expenses, so be prepared to shell out a decent amount of cash. You will need money for stamp duty, a deposit on your home and other costs, so start saving well before you try to make your purchase. Failing to do so can leave you short of what you need after you’ve already chosen your home.
