After helping hundreds of first-time buyers, I've seen the same mistakes repeat. Here are the most costly errors and how to avoid them.
Mistake #1: Not Getting Pre-Approved First
Many buyers start looking before knowing their budget. This leads to heartbreak when they fall in love with homes they can't afford. Get pre-approved so you know your real numbers.
Mistake #2: Underestimating Closing Costs
Beyond the down payment, budget 1.5-4% of purchase price for closing costs: land transfer tax, legal fees, title insurance, appraisal, and moving expenses. On a $700K home, that's $10K-28K.
Mistake #3: Skipping the Home Inspection
In competitive markets, buyers waive inspections to win. This is risky. Consider a pre-inspection before offer night, or budget for potential issues.
Mistake #4: Maxing Out Their Budget
Just because you're approved for $800K doesn't mean you should spend it. Leave room for lifestyle, savings, and unexpected expenses. A good rule: total housing costs shouldn't exceed 32% of gross income.
Mistake #5: Not Thinking About Resale
Your first home probably won't be your forever home. Consider future resale value: transit access, school districts, and neighborhood trends matter.
Want expert guidance? Call Sam at 647-784-7924 to avoid these pitfalls.