Buying a home is a complex process with many potential pitfalls. While hindsight is always a good thing, we think that you may avoid making some of the mistakes that other first-time purchasers in a similar situation to you have made in the past with the proper guidance.
Our goal is for you to be able to relax and enjoy your new home as soon as you get your first-time home buyer loan and move in. To do this, we’ve put together a list of some of the most common first-time buyer mistakes and will show you how to avoid getting into a difficult situation.
Mistake #1: Not Perceiving Things from a Different Perspective
Just because a house looks good on the surface doesn’t mean that it’s worth it. You need to be sure that the property will be able to fulfill your needs in the long term. Always ask yourself if you’d like to stay in that home for 5, 10, or 20 years. The property will need to be able to maintain a certain level of comfort to achieve this.
If you’re not sure how much effort you’re willing to put into a property, it’s better to set your sights lower to give yourself more flexibility.
Mistake #2: Failing to Negotiate an Ideal Deal
Estate and mortgage professionals are people, just like everyone else. They will have their own interests, which may not match yours. You should be willing to negotiate for a better deal to achieve a mutually beneficial arrangement. Don’t be nervous about negotiating a discount for your property to avoid inflated prices.
As a first-time buyer, you are not tied to a property; you will not be required to sell to relocate. Given your strong negotiating position, the seller may be ready to accept a lower offer, especially if they are in a rush to sell.
Mistake #3: Applying for Credit or Using Credit to Make Purchases
If you have never had a mortgage before, your credit report may not be very strong. In this case, you may find it hard to get a new loan or mortgage. You should avoid applying for or using credit to make purchases until your house purchase has been finalised.
Keep in mind that when you apply for a mortgage, lenders will pay special attention to your credit score and your current debt-to-income ratio. If you have a low credit score or are deep in debts, it might be the difference between getting accepted for a mortgage and being turned down.
Mistake #4: Underestimating House Ownership Costs
You should be sure that you are financially prepared to take on the additional costs of purchasing a home. You will be expected to cover not only the mortgage payment but also maintenance, insurance, property taxes, homeowners’ association fees, utility bills, and any necessary repairs.
Conclusion
The best thing you can do to avoid these mistakes is to learn as much as you can as early as you can. We have put together a list of the most common first-time buyer mistakes and have provided you with some valuable tips on avoiding them.
Are you looking for first time home buyer programs in the UK? A Move Brokers offers a wide range of mortgage products to help you get the best deals. Book a free initial consultation today!
This article is for information only and should not be seen as advice or a recommendation to act. As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments.