As a first time buyer of a condominium unit in Toronto
1. Mortgage disapproval. A previous credit problem, a delinquent credit card account, or a loan which takes too long to get paid up can take a toll in a person's decision to buy a home. The credit rating is what banks are looking into as a basis before they can lend money. When going for a pre-approval, proposing multiple applications to different banks and lending institutions is not recommended. This can also damage credit ratings.
When looking for Toronto condos for sale, a pre-approved mortgage will make it more attractive for the seller to recommend the condominium unit. It is very frustrating to find out the bank doesn't give a mortgage since this the buyer may not even get a decent housing offer at all.
2. Overestimating the capacity to pay. Financial institutions usually give out a miscalculated spending limit as compared to what the buyer expects. To avoid any problems, the buyer should list down all the monthly expenses without including the rent. Then, this should be compared with the amount of money earned in a month. The surplus money is what the buyer can afford to pay the monthly mortgage for the new condo.
3. Taking the entire process single-handedly. Many people looking into buying Toronto condos for sale would want to get through the entire process on their own. A buyer's agent will help out future homeowners with paper works, negotiating on the price, and other important matters. Any legal obligations and contracts that pose risks on the part of the buyer will also be avoided.
4. Buying without seeing the house. A lot of first time condo owners thinks ignores the importance of a condo inspection before closing the deal. They usually think that it is corporation's responsibility to take care of major repairs. However, this is far from the truth.
The individual condo unit owner should do the repairs unless the problem happened beyond the unit. A thermal inspection is recommended to see any problems not seen by the naked eye. Once there are repairs needed, the value of home can be renegotiated.
5. Impulsive buying. Buying a new home is an exciting prospect. However, a buyer should deliberate first on the value of home before buying a new unit. Make sure that the building and the neighborhood is complete with the amenities and facilities that you need.