How to avoid the mistakes every new homebuyer makes
Buying your first home is an exciting time but it is rarely something you will get done in a short space of time.
Buying a home is a long process and will require a lot of research; you don’t simply show up have a look around and then sign something and transfer the money.
There is a lot of work involved with buying a home and first-time buyers can make a lot of mistakes. The good news is that I'm going to share many of these common mistakes with you today so if you’re a first time home buyer, read on to find out how to avoid these all too common mistakes!
Being too shy
Let’s start with one mistake many people don’t really think about but lots of people make! Visiting a property can be a little nerve wracking especially for first-time buyers who aren’t really sure what they are looking for.
Because of this many people simply are too shy to actually ask any questions or press people for more information. This can understandably lead to big mistakes being made - you might end up passing on a great property simply because you didn’t ask for enough information.
Or you could end up in the complete opposite situation and buy a property that isn’t for you, because you didn’t ask enough questions. Yes, that really can happen, so don’t let nerves get the better of you and plan your questions ahead of time. If you’re really nervous then remember you can always go to any viewings with a friend or relative.
Not factoring in all costs
Another all too common mistake new home buyers make is that they don’t take all the costs into account. You don’t just need to consider your deposit, unfortunately, there are many other costs you need to pay.
These can vary from property to property but as a general rule, you should take stamp duty, legal fees, moving costs, survey and mortgage arrangement fees into consideration. Make sure you do all your calculations first so you can ensure you can actually afford the property you want. Too many first time home buyers simply focus on the deposit without thinking about the other costs involved.
Getting the wrong type of mortgage
One of the worst mistakes new home buyers can make is getting the wrong type of mortgage agreement. For the majority of home buyers, your mortgage agreement will be something you’ve worked out before you have even started looking at houses so you are starting off your search with a big disadvantage if you get it wrong.
Mortgages come in many forms and knowing which is best for your individual needs isn’t always easy. You also need to think carefully about who you get your mortgage from, as many people will just go to their bank which may not always be the best choice.
You should look around the market when getting your mortgage and not go for what seems like the easiest and simplest solution. You need to think long-term, and while it might seem like you’re over complicating things by taking more time to find the best mortgage deal, it will be sure to pay off in the long term.
Using all your savings
You’ll need to save up a lot of money to buy a house (I think everyone knows that) but many people will underestimate the total cost involved. And you shouldn’t focus on just saving up for your deposit and starter costs.
Because even if you have enough money to comfortably pay your deposit and arrangement fees you will still need some savings to cover the other day to day costs. You’ll find plenty of stories online from people who have said they have had to live paycheque to paycheque after getting their first house and while you can do this, it is very risky.
It might be tempting to start your search as soon as you’ve got your deposit together but save up for a little longer so once you’ve moved in you’ll still have some savings left.
Getting a small deposit
My final piece of advice is again based around the deposit because if one thing will trip up new home buyers it will be this. Most mortgages will want a 10% deposit as a minimum but you can find mortgages available for less and whilst they might be tempting, the larger your deposit is the easier your mortgage payments will be to handle.
So, that’s some of the common mistakes first time home buyers can make. For some general advice, remember to take your time and do your research and ensure you aren’t using all your savings just to get on the housing ladder.