Taking out a mortgage for your first home is one of the most exciting parts of becoming an adult. But that excitement—and the pride and responsibility it brings—can cloud your judgment and lead you to make bad decisions.

First-time homebuyers could make mistakes because they lack experience in the real estate market, which means it’s easier to overlook things that matter.

Here are six of the most commonly committed blunders when buying a home for the first time:

Considering Only the Mortgage Payment When Determining What You Can Afford

It’s not always enough to consider just the cost of the mortgage payment. When you take out a mortgage, you’re also responsible for monthly payments for homeowners insurance, closing costs, taxes, and other costs. Remember to consider all of these. When you do, you may discover that you cannot afford a home at the price you want.

Starting House-Hunting Before Getting Pre-Approved

When you are pre-approved before looking for a home, you will know for sure how much you can afford, and you won’t need to worry about getting turned down for a loan. It would be best if you had pre-approval before going house-hunting and looking at houses. The process can take several weeks, so start early to ensure you have all the time you need.

Not Having Funds for Emergency Expenses

The homeownership path isn’t all sunshine and roses. In fact, it can be pretty scary at times. When unexpected expenses crop up, you may not have the funds to cover them. As a first-time homebuyer, you’ll want to ensure you have an emergency fund ready. The size of your fund will depend on your budget and financial situation.

Forgoing Home Inspection

The inspection process can be stressful, but it’s also a crucial part of buying a new home. Inspections allow you to look at the house’s systems and ensure they’re running correctly. When you buy a home without a home inspection, you’ll be in the dark about any existing problems that you’ll have to deal with in the future.

Taking the First Interest Rate Offered

As a first-time homebuyer, you’ll probably want to get a great interest rate on your mortgage. However, the best interest rate isn’t always the first one you get. If you can, take the time to compare mortgage interest rates from multiple lenders. If your first lender turns you down, you can try to secure a better deal from another lender.

Not Checking Credit Report Before Mortgage Application

A credit report helps lenders measure a borrower’s creditworthiness. A bad credit report can sometimes indicate a borrower’s potential inability to make mortgage payments. As a first-time homebuyer, you’ll want to make sure that your credit report has no issues. Check your credit report before you get a mortgage to ensure it doesn’t have any negative marks, such as accounts in collection.

Conclusion

The mistakes above are common among first-time homebuyers. It is vital that you avoid them as much as you can. The best way to ensure that you’re doing things right is by seeking the help of a real estate professional.

When you’re ready to purchase your first mortgage application in Ontario, Mills Financial Group can help you. We can provide you with a loan solution that is perfect for your needs. Get in touch with our team today to know more!