Buying your first home can be a stressful time. Lots of new terminology, new contacts and lots of rules….you can’t know it all, and mistakes will happen. But you can easily avoid the most common mistakes made by the first home buyer.
1.Not managing emotions
Buying a house, particularly as a first home buyer is an emotional time, regardless how frequently you are advised to not let your emotions run away with you. But it is vital that you do to keep your control of your emotions, to avoid being taken advantage of, and recognise issues before you buy.
- Research a property prior to viewing to ensure it meets your requirements – in the right area, at the right price, with the required features.
- Having a trusted friend/family member willing to attend property inspections with you, to talk through pros and cons of properties, can be helpful to keep things in perspective. Taking notes and photos throughout the viewing provide factual reminders.
- Even if you fall in love with a house, do your due diligence, have a full property inspection.
- Read the small print, and/or ensure your legal team does this before you sign anything. Buying a house is a massive decision and financial commitment.
2.Overstretching the budget
If you are buying a home at auction, or via a real estate agent it can be easy to push your financial limits. It is important that you don’t overextend yourself. If you spend an extra $5,000 that could mean you are unable to furnish your new home, or worse unable to afford the mortgage payments or other necessities. Set a budget in advance, and stick to it.
3. Not planning for hidden costs
Buying a property costs more than the sale price. Before you get your home, you need to factor in costs for building/pest inspections, stamp duty, legal and settlement fees including title searches and possible mortgage related fees.
There are also related purchasing costs to consider – moving, insurance, rates and ongoing maintenance. Being aware of these costs in advance allows the first home buyer to budget for them, and avoid surprises and disappointments.
4. Not getting your loan pre-approved
Waiting until you have found your perfect house to sort out your finance approval is setting yourself up for disappointment. Pre-approval takes time, and without this step completed in advance you could miss out. Once you have pre-approved finance in place you can move forward for property purchase when you are ready.
Being well organised can give you leverage over other buyers, and your offer more attractive to vendors. You’ll need documentation of your loan and be ready to pay the deposit immediately.
5. Getting impatient
House hunting can take time, and sometimes you can get search fatigue. It can be tempting to buy the next property regardless of whether it meets your full set of criteria.
You may need to take a break to return later with a new resolve. Impatience can be an expensive decision that you regret in time. Be certain that any property you buy meets your main criteria.
6. Getting a building inspection
Trained professionals can identify major structural damage that is not visible to home buyers, including faulty wiring, shaky foundations, pest infestations. Don’t buy before a full inspection is completed.
7. Going it alone
In addition to the trusted advisor who attends property inspections with you, having a team of specialists that you can trust, as a first home buyer – a good mortgage broker, real estate agent, lawyer and building inspector will make your home buying experience less stressful and more efficient.
Vizion Group Qld is a highly respected local Sunshine Coast development company, offering first home buyers a quality, attractive, affordable home in a highly desirable location close to local amenities. We provide you with one point of contact throughout the entire process, including regular updates showing progress. We can highly recommend our professional contacts because we use them ourselves. Buying your first home doesn’t have to be a stressful experience. Contact us today to discuss your needs.