It’s incredibly stressful, buying your first home, and mistakes will only ever add to those stress levels. Every year, thousands of first-time property buyers tentatively approach the property ladder and then make the same mistakes.
So if you want to avoid that happening to you, there is a solution. Here are some of the most common mistakes people make when buying a house for the first time. The more you know about these errors, the easier it will be to avoid them.
Not Knowing Your Prices
If you don’t know what kind of house price you can afford, you’re going to waste a lot of time viewing homes that are either way beyond your budget or way below your expectations. This is one of the most common mistakes made by first-time buyers, but it’s an easy one to avoid.
Make sure you know what savings you have, and use one of the many mortgage affordability calculators available online. You want a price that’s affordable, not just for the purchase itself, but for the next few years of paying your mortgage.
Rushing into a Mortgage
Just like you wouldn’t buy a new car without looking at a few other options, don’t jump at the first mortgage lender to make you an offer. It’s always going to work in your favour when you take a step back and start comparing the pros and cons of each potential mortgage offer. Check the interest rates, but don’t overlook the fees the lender will charge you.
Getting the right mortgage is one of the most important parts of buying a home, but it’s also where many people make their first mistake. Never just accept your first offer of a mortgage. Instead, shop around, and have a good understanding of what makes the best mortgage for you.
Not Hiring a Solicitor
At some point, you’re going to view the perfect home, make an offer, and have that offer accepted. At this point, most buyers start thinking about hiring their conveyancing solicitor. Conveyancing is such a big part of buying a house, but leaving it until you’ve had an offer accepted is an all too common mistake.
Your Pakenham conveyancing solicitor will have a lot to do, so it’s always a good idea to get one on your side as early as possible. That way, by the time you do have an offer accepted, all of your legal documents will be in place, and your solicitor will be ready to get down to those all-important property searches. So never wait to hire your conveyancing solicitor.
Ignoring Credit Scores
Make no mistake, your credit score is going to play a big part in determining the best mortgage — and if your credit score is low, you might struggle to find a lender offering good terms. So checking on your credit score is always a good idea when you’re thinking about buying your first home.
If your credit score is lower than you’d prefer and limits what you can afford, then step back and rethink your timeline. You might have to take a few months to build your credit score up, which can be frustrating. However, once that’s done, a better credit score will lead to better mortgage offers, and that could end up saving you a considerable amount of money.
Avoid All of These Mistakes
Mistakes are common when buying a new home, and avoiding them can be challenging for first-time buyers. The key is to research as much as possible, so you know all you can about the process. The more you understand what’s happening with what is likely to be the biggest purchase of your life, the easier it will be to avoid the most common mistakes.
Avoid these mistakes, and you could be moving into your dream home much sooner — all without a stressful price tag that’s going to affect your quality of life for the next few years.