Dreaming about a new home? You’ll want to avoid the common errors most buyers make when they first hit the market. Buying a new home is an important decision which involves a significant financial commitment, and the preparations you make now can help protect you from making costly mistakes later. Here are three things to avoid:
1. Buying without expert advice
The rise of online shopping has really encouraged the self-starter generation. Need to find something? Google! The world is at your fingertips. Why set foot in a crowded high street store when you can buy direct from your living room (or better yet, your bed)? The same goes for house hunting, where it’s so easy for buyers to find homes on the internet.
Going straight to a lender and saying “I want THAT one”, however, is one of the biggest no-nos for first time buyers. Mortgages and real estate comparisons require expert knowledge that brokers spend years learning. You need to take on some of that advice to avoid missing out on better options and market information that might have helped you make better decisions in the long run. In other words, listen to people who know the system inside and out. And always go for an impartial advisor rather than one that is tied to a lender – it’s the best way to get unbiased advice (psst, we know a guy).
2. Failing to keep an open mind.
The real-estate market is a lot bigger than most first time buyers think. Many first timers think that what they see is all that’s available, and end up falling in love with one property, only to discover that it doesn’t fit their budget (or another essential requirement). If you’re going to struggle to make ends meet with the mortgage repayments on your dream home, it may be time to broaden your search and refine your objectives to make sure you’re not being too narrow in your focus. You need to find the deal that best suits your financial needs, considering your monthly income and other expenses. Having backup options is a good idea – many people will put in offers on a number of places before one gets accepted!
3. Not budgeting appropriately.
Getting a house should be a long-term process, one that includes a thorough examination of your budget, as well as your monthly income and expenditure. Although a good advisor will go through affordability checks and budget planning to make sure you can afford your home, there are certain steps you should take before you ever set foot in an office for that first mortgage discussion. Getting your credit score to a solid level, a reasonably sized deposit, and extra cash reserves to cover additional expenses is a good place to start.
For many people, buying a house will be one of the biggest purchases they will ever make. Contact us to find out how to avoid making any of these common mistakes, and to how to make the most out of that all-important first step onto the property ladder.