Buying the first home is an important decision and involves much more than signing a contract of sale. Nothing can be more interesting than buying your own house for the first time. As a home buyer, the idea of looking for the ideal home can be exhilarating and stressful at the same time. Most first time home buyers make mistakes when buying their home and head up regretting it in future. Here are the top 8 Mistakes First Time Home Buyers Make
1. Impulse buying
Buying your first home can make you dizzy and excited. Many home buyers are victims of impulsive buying for the first time because they are instant, but the first home they see without asking for more information. Real estate agents can show you pictures or invite you to house openings.
Don’t fall into their traps. You have to be very careful and not let go of the emotion you feel. Be very open-minded and try to consider all the options. You need to look at other probable homes that you can buy before deciding on the best one.
2. Choosing the wrong mortgage
Before looking for the best house, you should be in the best negotiating position. Make sure you choose very carefully after you have done thorough research. We also recommend that you use the services of an independent financial broker in addition to your bank.
These institutions have access to many financial products and creditors. Many people often regret not asking for a second opinion when buying a home. They access the first mortgage offer that comes their way without considering or considering other options. You need to avoid making the same mistake by doing your research. There is no point in spending a lot of money on mortgage payments every month.
3. Not Getting The home Inspected Before Buying
When looking for a home, potential buyers can find what they think is their dream home. The building will most likely look okay for the first time, but problems may appear below the surface that is not so obvious at first glance. Some buyers eliminate home inspections to save costs.
Not to mention the new owners will be forced to make these repairs to a home that they most likely would not have bought if they had known in advance that it was defective. Never buy a house without inspecting it first, even if the house is brand new. Inspect all the necessary aspects and, if possible, research the land on which the house was built.
4. Underestimating getting pre-approved
Pre-approval from a lender not only shows you how much you can afford but also guarantees you the current interest rate for 90 to 120 days. You can then search for your home with confidence. If you want to know whether or not you can afford a home, you should get pre-approved mortgage approval. This can improve your chances of getting the home you want compared to other buyers who have not been pre-approved.
This way, you can also see a bird’s eye view of how much you will pay per month. You will also lose a lot of time, not to mention frustration, if, after receiving a mortgage, you find that the bank does not make you a mortgage offer.
5. Not Hiring an Estate Agent
For the first time buyer, it is difficult to trust n estate agent. But, It is always advisable to use a real estate agent the first time you buy a property, as they will do their best to help you find the right property at the lowest possible price.
But remember, don’t just hire a broker, do your homework and ensure your credibility and reliability. Going through an open day without a qualified real estate agent is one of the worst mistakes you can make. Real estate agents are responsible for acting in the interests of both the seller and the buyer.
Therefore, we recommend that you hire your broker so that you can create a lasting relationship that will last a long time. A good estate agent should also be an effective advisor as well as a seller. You need to know the needs of the buyer, explain the current market conditions and help them find suitable homes. So make sure you choose the right agent.
6. Spending beyond your budget
In their enthusiasm to buy a house they really like, buyers sometimes seem excited. In such cases, sellers tend to take advantage of buyers by offering an unreasonably high price. This often leads to buyers exceeding the budget and buying a property that could have made it cheaper.
Exceeding the budget limit is not a good idea. You may want to choose a property that fits your budget. Even if you like a house, choose it only if it is within your price range. After all, you don’t want to run into problems later. We all want a little more than we can afford.
No matter what your estate agent suggests, you should never be tempted. If you spend more than you can afford, you may have financial problems in the near future.
7. Skipping multiple visits of the property
No one is stopping you from bidding for the first house you see. However, you should never forget to visit the property several times. During the first visit, you may have missed a few details.
The home seller can draw your attention to other things that block your thoughts on more important details. To make sure that your choice is correct, you should visit the house several times and at different times.
Drive around the area at night, when most residents are at home, to see if the neighbourhood is quiet and desirable.
8. Not Knowing Your Credit Rating
Lenders use your credit rating to review your repayment history and to assess the risk involved in obtaining a loan. Your credit report has a score based on your repayment history. You can improve this score by making the minimum payment for your credit cards, loans, and bills on time.
It is important to know what your credit report says before applying for a mortgage or loan. Visit the Equifax website to get your credit report.
Buying the first home can certainly seem overwhelming and stressful at times. However, if you have already done your research, you can protect yourself from all these mistakes and buy safely. After all, buying a home is the biggest purchase you’ve ever made, but it shouldn’t be the hardest thing!