Congratulations, you are getting ready to buy your first home! This is an incredibly exciting time and a huge achievement. In the thrill of it all, you will need to make sure not to make any of these 6 common mistakes that first-time buyers can fall into.
For one thing, do not lie on your mortgage application – this will not help you! Moreover, do not begin house hunting before your loan is approved.
You should also use a realtor, get a home inspection, consider the neighborhood and time your offer right. Let’s look at each of these common mistakes in more detail.
1. Lying on Your Mortgage Application
Many people think it is a good idea to tell white lies on their mortgage loan applications to help them get approval. However, this is a big mistake and can lead to you not being accepted for the loan. Do not pretend you have a bigger deposit than you do or a larger income than is true. This will not help you.
Instead, reach out to professional mortgage brokers for expert advice and guidance that will help you land the loan you need to buy a home. Experienced brokers offer fee free mortgage advice in London that can help first-time buyers through this process without mistakes. You will be supported as you work out how much you can borrow, get a mortgage in principle and eventually exchange contracts and move into your first home.
2. House Hunting Before Mortgage Approval
Speaking of your mortgage, it can be tempting to jump the gun a little on your house hunting and start looking before you have been approved for a loan. This is a mistake because you do not yet know exactly what your budget is. Moreover, you cannot commence any negotiations when you do not yet have access to the funds you need to complete a purchase.
As exciting as it can be to look for your first home, you need to make sure you are doing everything in proper and logical order.
3. Not Using a Real Estate Agent
When it comes time to start searching for your dream first home, the biggest mistake you can make is trying to do this without a realtor. While it is possible to buy a home without a real estate agent, it is not advisable. Especially if you are new in the world of real estate.
The thing is that realtors are experts. They know how to get the best deal possible and make the process as seamless as can be.
4. Skipping the Home Inspection Stage
Another mistake that some eager buyers make is waiving the home inspection stage of the buying process. The reason the home inspection is so crucial is that it protects you and the lender in the event that there are significant issues with the structure or core systems of the home. You do not want to buy and move into a house that is not fit for purpose.
5. Not Considering the Neighborhood
Of course, buying your first home is a very exciting time and it can be easy to get caught up in the home itself and not consider the features and amenities around it. But it is wise to consider the area you would be moving into. Think about the nearest hospital, schools, crime rates, leisure amenities, and any other features of the neighborhood that could make or break your decision to buy there.
This is potentially where you will raise a family or grow old, so you need to make sure that you have considered the area and all of its pros and cons. Do you feel safe here?
6. Timing the Offer Wrong
Lastly, you can fall into two traps when it comes to placing your offer. You can rush into it too hastily without properly considering the amount you are offering. On the other hand, you can wait too long and miss out. This is a fine balancing act and another great reason to use the expert guidance of a realtor.
These 6 common mistakes made by first-time buyers are easy to avoid when you follow the expert advice of a realtor and mortgage broker. In the excitement of buying your first home, however, you might get carried away.
So, remember this advice and seek professional guidance while you apply for your mortgage loan and begin house hunting. Remember to be honest on your loan application, wait until it is approved before you house hunt and use a realtor.
On top of that, get a home inspection, think about the neighborhood, and time your offer right. Good luck!