The day comes when you get tired of paying rent to someone else and you decide it's time you owned your own place. Being a first time buyer you have decided that a Toronto Condominium Listing is the affordable route at this time.
Before you run off excitedly looking at every Toronto Condo on the market keep in mind these 5 deadly mistakes people make in their quest for independence and home ownership.
•1. Not Getting Pre-Approved for a Mortgage
Perhaps you have had some credit problems in the not too distant past, credit card debt you have fallen behind on or a student loan you have been slow in repaying. These can all affect your credit rating and the bank's decision to lend you money as well as the amount and the price (interest rate) they will charge you.
Even with a perfect credit score how are you going to know what kind of mortgage a bank will extend to you without asking them.
If you do not get pre-approval you will need to make any offer on Toronto Condominium Listings conditional upon financing. In the eyes of a seller this can make your offer unattractive.
You will also waste a lot of time not to mention getting frustrated if you find out after making an offer that the bank will not give you a mortgage.
When you do go for pre-approval do not make the mistake of submitting multiple applications with several different institutions. This can adversely affect your credit rating also.
•2. Miscalculating Affordability
It is not unusual for the financial institution pre-approving you to give you a spending limit that is higher than you anticipated. A lot of first time Toronto Condo buyers make the mistake of thinking that what the bank thinks you can afford and what you can easily manage are sometimes far enough apart to create financial havoc for you in the future.
To find out what you can comfortably manage sit down and make a list of all your monthly expenses excluding rent. Don't forget to add items such as pre-arranged RRSP payments.
When you are finished deduct your total monthly expenses from your after tax take home pay and that is the amount you can easily manage for your new Toronto Condo.
•3. Not Hiring A Buyers Agent
Many first time buyers of Toronto Condominium Listings make the mistake of not hiring their own Buyers Agent to represent their interests before they start looking at new and resale condos.
If you are looking for a resale condo and end up buying from the listing agent he or she has a legal responsibility to look after the sellers' interests, NOT yours.
If you are considering a new preconstruction condo the sales people you meet in the sales office will work for the builder, NOT you.
You especially need your own Buyers Agent to help navigate through the potentially hazardous contractual legal obligations involved in this type of Toronto Condo purchase.
•4. Failing to do a Home Inspection
Many first time condo buyers and some seasoned ones think that a home inspection on a Toronto Condominium Listings is a waste of money. In fact I have heard of some newer agents advising against a condo inspection citing that the condo corporation is responsible for major repairs.
Nothing could be further from the truth!
All repairs inside the unit are the responsibility of the individual unit owner unless the problem occurred outside of the unit, a leak starting from a unit above for example.
A thermal imaging inspection is recommended for a Toronto Condo these days.
Unlike a conventional home inspection which is visual, a thermal imaging inspection will uncover problems that are hidden to the naked eye. Using infra-red cameras thermal imaging will provide invaluable information with issues such as water leaks behind walls in kitchens and bathrooms, energy loss, electrical faults and mould.
A home inspection will allow you to renegotiate the price if any such problems are uncovered.
•5. Failure to make sure the Building Fits
Once you have seen a condo unit that you like the immediate response is to rush into preparing an offer.
This is understandable as the excitement and anticipation of a new home takes over the emotions.
This could be a mistake.
Take a moment to stand back and ask yourself if this building is a good fit and meets all of your requirements. Spend an hour sitting in the lobby, preferably at rush hour and see who your potential future neighbours' are.
Make sure the neighbourhood has the facilities that you need and can you live without the ones that are missing.
Buying your first Toronto Condominium Listing can be stressful but it doesn't need to be if you keep these costly mistakes in mind.
John Lavin is a full time realtor with 25 years' experience helping buyers and sellers of homes, condominiums and investment properties in Mississauga and Toronto. If you are in the market for a Toronto Condominium please visit www.john-lavin.com
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