First-time homebuyers are often excited by the whirlwind of the process and can often make rookie errors because of this. Purchasing your first house is arguably the most nerve-racking and thrilling time in your life, so you need to tread carefully, with or without a mortgage advisor.
Let’s go through some of the most common mistakes that first-time homebuyers make to help ensure that you do not get caught out by these pitfalls.
Forgoing a Decision in Principle
Buying a house is fun, so many people head straight to home viewings before getting their affairs in order. Don’t do this. One of the first things you may need is a decision in principle from your lender. This gives you a certificate stating how much money they would lend you.
The problem with not making a decision is that, since the housing market is so competitive, not having a decision in principle could mean losing out on the property you want. So before you head out looking for your dream home, get your decision in principle from your lender first because it will make you more appealing to the seller as it shows you have all your finances in order.
Going the Process Alone
Buying or even choosing a home is stressful if you don’t have an external source of support. Many people dive straight into a bank to apply for a mortgage, which means they have to do everything themselves. However, working with a mortgage adviser can help with this. They’ll handle all the paperwork and walk you through any areas of the process you might not know much about.
Though they charge a fee for services rendered, it’s usually a worthwhile investment. Remember to allocate funds for this in your budget, too!
Insufficient Funds
Acquiring a home is often regarded as one of the most important financial choices that people can make. So it stands to reason that you usually have to pay fees to third parties, such as solicitors or building surveyors. But those fees are not the only costs associated with buying a home. In addition, you may have to pay fees for furniture and utilities.
Thus, you must make sure you have enough money to put down a sizable deposit and enough money to cover the other associated costs. Otherwise, you could find yourself in some financial trouble. If you’re unsure about your finances, it’s best to work with a mortgage advisor.
Poor Credit Scores
Good credit is essential for getting mortgage approval; it shows mortgage lenders that you’re reliable in repaying your monthly mortgage bills. If you are wondering what having a reasonable credit score means, good credit is having no outstanding debts and being able to pay back bills on time.
But don’t worry; if your credit score isn’t great, there are some pretty easy ways to improve it:
- Be on the electoral roll.
- Pay off outstanding debts, starting with the least expensive one.
- Build up your credit history—an example of this would be to get a credit card and pay the total amount every month. Compounding interest is a credit score killer.
- Borrow only amounts you can afford to repay immediately.
Work with a Mortgage Advisor from Cheshire
Since your new home is a significant expense, there are ways to make it a less stressful experience. That’s why you should avoid these mistakes new homebuyers make. Plan from the very beginning, and you’ll find the home that perfectly fits your budget.
Work with a mortgage advisor from Cheshire by contacting A Move Brokers today! You can book a free consultation to determine which of our products offers the best deal for your new home. Visit our website to learn more!
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.