Buying a house for the first time is a huge business. Not only have you spent time saving for a deposit and sacrificing where you can to afford it, you must now find the keys to unlock the doors of home ownership. It’s a huge responsibility and not only is it about more than looking round the pretty houses, but there are some mistakes that get made along the way that you must avoid to be successful.
Signing document for new home.
Location, financing and even shopping for your new house have their challenges to overcome in ways that choosing carpets and interiors never do. Here is a list of five very common mistakes that first time homebuyers should go out of their way to avoid.
- It’s more than just the mortgage. When you rent a house, you think about the monthly house cost in terms of your rent. When you buy, it’s more than the mortgage. Just because you can afford the monthly mortgage repayments doesn’t mean you can actually afford the house. You need to have contingency money for unexpected boiler replacements and property insurances. You should have the right home insurance in place so that you can make sure you are covered for things going wrong. Without this, you are leaving yourself open and vulnerable; something no first-time buyer should be.
- Don’t get your hopes up. Always learn whether you are pre-approved for a mortgage first before you go and start looking. So many prospective homeowners are worried about leaving a footprint of search on their credit files, but without knowing what you could get, how can you begin to look at your home options? You’ll be able to make a practical home decision instead of an emotional one, which is worth its weight in gold.
- Never go it alone. Where you can, seek the right advice. Get a solicitor, a mortgage advisor and solid advice before you even begin from a loan officer. You need to make sure you are able to buy a home, make repayments and still afford a good quality of life. Always get help and never be afraid to ask stupid questions: when it comes to homebuying, there are no stupid questions, only valuable answers.
- Save for more than just the deposit. Always aim to save for a few thousand more than you need. Don’t add this to the down payment on the house, but use it for insurance and as an emergency fund. If you do this before you go ahead, you can be confidently comfortable.
- Wait. Always wait to buy a new car, new furniture or any other big purchase until your house is completely yours. Lenders will always check your financial status between the purchase and the close of 30 days, to ensure nothing has changed like a lost job. If you go and splurge on a new financial commitment, you’ll end up looking frivolous with your money and unreliable as a buyer. Waiting thirty days won’t hurt!
These mistakes can all be easily avoided, meaning your new home purchase can go off without a hitch. Congratulations on your new homeowner status; enjoy your new house!
