Buying a house in Toronto is an exciting yet challenging journey. The Toronto housing market is growing exponentially, and finding the right house or condominium requires taking many important steps before you sign. For this reason, potential homeowners need to avoid common mistakes when making their first purchase. Once you learn how to navigate the Toronto housing market, you'll find many great opportunities for your new home.
1. Shopping for a Home Beyond Your Budget
Many people are thrilled at the prospect of homeownership and often aim for houses and condominiums that exceed their budget. It's important to assess your financial situation, considering all sources of income and monthly expenses, to determine the amount you can afford. You can calculate the approximate mortgage you qualify for, so you have a figure to work with during your search. In some cases, houses may be underpriced, which is important to keep in mind because they may be set up for bidding wars.
2. Skipping the Home Inspection
A home inspection is an essential step in evaluating your house. It provides you with a diagnosis that highlights any potential issues that need your attention or may go wrong in the future. It's an important step that you shouldn't skip, as it can save you from making some significant mistakes. When you receive the inspection report, it's vital to review it carefully and ask questions for clarifications of any repairs and related expenses required.
3. Making an Offer Without Your Mortgage Approval
Once you are set to buy a new home, you must receive a mortgage approval before proceeding. This commitment ensures your financing won't fall through when you find the perfect house. To apply for a mortgage, your bank or financial lender will check your credit, employment, and ability to make a downpayment to determine if you qualify and for which amount.
4. Searching for a Home Only in Specific Neighborhoods
5. Not Budgeting for House Repairs
Many homeowners underestimate the number of repairs they'll need once they buy their home. While your home inspection will provide details on the significant areas that need attention, you'll be surprised how many small, routine repairs and maintenance you need to consider for your home. Setting up a budget for utilities, appliance repairs, and the unexpected is important.