If you have recently been thinking of buying your first home, congratulations! It’s an incredible achievement, but it’s completely understandable if you are feeling a bit stressed. It’s even overwhelming for the most experienced professionals! There are a lot of different things to consider, and you don’t want to end up in a sticky situation, especially since you are new to everything.
In this article, we are going to go over some common mistakes to avoid when buying your first home so that you can complete the process in the best way possible. Interested in learning more? Then keep on reading!
Borrowing to much
When people first get approved for a loan, they are often amazed at how much they can actually borrow. However, it’s not wise to jump ahead of yourself and take out an insane amount of money. This will only increase your debt, and you’ll be paying off a very large sum of interest.
Unless you are 100% sure you can pay back everything without any worries, it’s best to stick with an amount you are comfortable with. Remember, the more you borrow, the more you have to pay back. If you are worried, try and speak to a financial advisor first. They will be able to assess your finances and give you an idea of what a suitable amount is.
Not doing enough research
Buying a home requires a lot of research, and if you don’t do this properly, you’re going to run into a lot of issues. Firstly, you want to get an idea of the current market. If it’s too expensive, you might be able to wait a few months until things calm down.
On top of this, you might want to look into the various types of houses and what will suit your needs. This will help you narrow down your search so that you are looking at the most appropriate properties. The last thing you want is to be stuck in a bad neighborhood.
Using the wrong agent
Hiring an agent to help you through your first home purchase is essential, as they can help you get the best possible deal. However, while there are many good agents out there, there are also a lot of bad ones too. Some individuals may not listen to your requirements, or worse, will try and take advantage of you.
If you are about to find an agent to represent you, make sure, you look around at a few different options first. Ask for advice from friends, read reviews, and make sure they have the experience you require. A good agent should listen to what you have to say and provide the best advice possible.
Looking at homes before getting a loan
While you might be tempted to go straight into looking at all of the properties you can, it’s not always the best idea. First, you should make sure that you can get accepted for a loan, rather than expecting it. Things can always happen, and if you have a bad credit score, you might not be able to borrow what you need.
On top of this, you might get too ahead of yourself and start paying specific fees that you can’t get back. It’s wiser to be one step ahead and have a budget in place to avoid disappointment. Trust us when we say it’s better to be safe than sorry.
Underestimating hidden costs
Obviously, the most important cost that you need to worry about is your initial deposit. However, there are other things you want to take into consideration. For example, stamp duty, home insurance, and additional costs, such as the property transfer and mortgage registration fee, can quickly add up. These are all things that you need to prepare for in advance; otherwise, you may not be able to afford it. Try and save a few extra thousand up before starting your search. It really will make a difference.
Skipping the inspection
Hands down, one of the biggest mistakes that an individual can make when buying a home is to skip getting an inspection. They might have thought that everything looked ok during their visit, but there can be a whole heap of things wrong underneath the surface.
Pests, structural damage, faulty electrics, plumbing issues, and other hazards can wreak your home and put you and your family at risk. At the end of the day, getting a professional home inspection is vital so that you can determine any hidden problems and make your final decision.
Not thinking about the future
You might think that it’s all well and good once you’ve been approved for your loan and have a deposit. However, it’s also important to think about the future. Will you be able to manage the payments and interest? What are your plans for the property in the next five years? Do you think you will sell or keep it as an investment?
By asking yourself these questions, you are validating that this is the right decision. If you can’t answer them, then it might be time to revaluate the situation.
Getting too emotional
Lastly, another mistake that many first-time homeowners make is getting too emotional during the house-hunting process. You might be totally in love with a property, but it doesn’t mean that it is right for you.
Trust your agent, and remember there are always other fish in the sea, or should we say homes in the neighborhood. The perfect place will come along eventually, it’s just going to take some time! Don’t give up, stay strong, and remember there will be a happy ending!
And that’s it! These were some of the most common mistakes that you should avoid when buying your first house. While it might seem a bit challenging, remember that you can do this! Just make sure you do your research, ask around for advice, and don’t finalize something unless you are absolutely certain of it.