If you are buying your first house, you will have a lot to consider. This is an incredibly exciting time in anyone’s life. However, the last thing you want is for it to turn into a nightmare scenario. This can easily happen if you make one of the mistakes mentioned below:
- Misjudging the timing – This is one of the most common mistakes first-time buyers make, and it can mean that they are left without a place to stay. This is obviously a scenario that no one wants to find him or herself in. The truth is that buying a house can often take a lot longer than anticipated, especially when there is a chain. Plus, every experience is unique – just because someone else’s sale went through quickly, does not mean yours is going to.
- Failing to get a house survey – You really cannot afford to make this error! A lot of people think that they do not need a house survey because they will be able to spot any problems with their eyes. However, it really does take a professional to spot any potential issues, for example, foundation problems. A professional survey may cost money to begin with, but it can save you tons of money in the long run.
- Underestimating total costs – It is important to sit down and work out all of the costs that are associated with buying a property. Unfortunately, it is never as simple as merely the cost of the deposit and the mortgage repayments. There are many other expenses to consider too, including legal expenses, the cost of moving, council tax, buildings insurance, and such like.
- Not asking enough questions – Don’t be afraid of asking plenty of questions. A lot of people hold back because they don’t want to be a pest. Don’t worry about it; you should ask as many questions as you need too. After all, this is likely to be the biggest investment you have made to date, by a clear mile!
- Not getting a pre-approved mortgage – It is understandable that you may want to dive straight in and start looking for your dream property as soon as possible. However, you need to make sure you get a mortgage approved first and get a VA certificate of eligibility. So, before you even consider searching, make sure you get in touch with your selected mortgage lender and ask for a mortgage in principle. This will be a statement or certificate from a lender that says in principle they would lend you a certain amount of money.
- Assuming you need a 10% deposit – As a first-time buyer, a five per cent deposit may be all you need. Nonetheless, there is a downside associated with a five per cent deposit. This is the fact that you will have a limited choice of mortgage options.
So there you have it: some of the most common mistakes that first-time homeowners make when buying their first property. If you can avoid the errors mentioned above, you will go a long way to ensuring everything runs smoothly.