So, you are ready to buy your first home? This is great news! This is an exciting time in anyone’s life. There are few prouder moments than getting on the property ladder for the first time. Nevertheless, while there is a lot of excitement ahead, there is likely to be a lot of stress too. You can minimise this by making sure you do not make one of the common errors that a lot of first-time homebuyers make. Read on to discover where a lot of people go wrong so that you can avoid making the same mistakes.
- Not thinking about the future – This is one of the biggest mistakes people make when buying a property for the first time. If you have rented beforehand, you will often think about the here and now when you are choosing a property. This is understandable. A rental contract is flexible, and so you can easily move on once the place does not satisfy your needs anymore. The same cannot be said for a home that you own. It’s yours. Selling can be a massive upheaval too. This is why you need to consider your needs not only now but in the future as well so that you can choose the right property for you.
- Using the seller’s agent or neglecting to hire an agent altogether – Both options are mistakes. You should never walk into an open house without having a professional real estate broker or agent. There are companies like Buyer’s Corner Realty that will be on your side and ensure you are getting everything you need from the property you have set your sights on. While agents are supposed to act in the interests of both parties, it is always better to find an independent real estate agent yourself rather than relying on the seller’s agent.
- Failing to invest in a professional property inspection – A lot of first-time buyers consider the property inspection to be an unnecessary expense, and they live to regret it. You may assume that any issues with a property will be evident to the naked eye, especially if you inspect yourself with great scrutiny. However, this is simply not the case. You need a professional to take a look at the house to determine whether there are any underlying issues. This could save you a fortune later down the line. You may decide that the property needs too much work doing, and so you opt to look elsewhere. Or, you may be able to reduce the asking price if you pick up on any issues. Without a property inspection, you could end up paying way over the odds for a house that is only going to cause you a lot of grief in the near future.
- Compromising on the important things – Before you go house hunting, it is important to make a list of all of the things that really matter to you. There should be the elements of a property that you do not have room for negotiation on. For example, you may require three bedrooms. You need to ensure that you do not compromise on these aspects throughout your property search. It can be easy to do so. After all, you have found a property that you completely adore, and so you feel you are willing to overlook the fact that it does not meet your specifications. While this may seem like a good idea at the time, after a few months, you will feel frustrated, as you are living in a home that does not match your needs.
- Failing to consider additional expenses – This is a mistake that a lot of first-time buyers make, and it can be a very costly one. When buying a property, you aren’t only going to have the deposit and the monthly mortgage payments to fund. There are many other costs involved. During the buying process, you are going to have the likes of property taxes and service fees to consider. Once you move into your house, there will be ongoing costs too, for example, maintenance and insurance. It is important to include all of these expenses in a financial plan so that you can determine how much you can comfortably afford. The worst thing you can do is run out of money while you are in the midst of purchasing a house.
- Skipping mortgage qualification – We get it: you are excited to find the house of your dreams, and you want to dive right in and start browsing all of the options that are available. However, rushing in like this is a big mistake. Before you do anything, you need to ensure you get pre-approved for a mortgage first. After all, there is nothing worse than wasting your time and the buyer’s time by putting in an offer on a house only to find that you cannot go through with it because you have not been accepted for a mortgage. If you are struggling to get pre-approved, there are a number of things you can do to boost your chances. This includes working on improving your credit score by paying off all debts, joining the electoral roll, and ensuring that all of your personal details are up to date.
If you can avoid the mistakes that have been mentioned above, you can go a long way to ensuring you have a stress-free process when buying your first home. While we all experience bumps and hurdles along the way, the last thing you want to do is make a mistake that is going to result in you have a nightmare scenario on your hands. Now you know what not to do, you can make sure this is not going to be the case.