Common pitfalls first home buyers make

It’s a stimulating time when you’re seeking for your first house. The idea of having a permanent home and to be paying you a mortgage and not somebody else’s is attractive.

But what are the common mistakes that first-home buyers need to be familiar with?

1. Not having sufficient income to obtain a home loan

As a first-home buyer you want to do everything that you can to encourage the bank to give you a mortgage. This means guaranteeing not only that you can prove that you have saved a considerable deposit but that you also have a solid credit score (paying bills on time), you have reduced or removed any unnecessary debt, and that your income is sufficient to sustain the mortgage payments.

2. Not obtaining a pre-approval from the bank

Getting a pre-approval from a bank will enable you to know the maximum amount that they are willing to lend to you for the buy. Having this pre-approval will also mean that the process of buying a home runs more smoothly and efficiently.

3. Borrowing too much money

Your bank will probable approve you for a loan that is more than you can realistically afford. You should not think of buying a property with a huge mortgage as the worst thing a first-home buyer can do is put all their funds towards their mortgage. It is important to know that there are other costs associated with owning a property. In addition, if a personal emergency occurs you don’t want to be caught without no money.

4. Not research the other costs

It’s important to research all the costs associated with the purchase. Some examples are: the cost of moving, the money for the building report, conveyancing fees for your lawyer, home and/or lenders mortgage insurance, rates, and repairs and maintenance. These should all be included into the calculations before deciding on the price range that you are looking for.

5. Reducing assistance from the professionals

A mortgage broker or adviser can help you navigate through the maze of what can be a daunting first home purchase. Your lawyer can ensure the purchase agreement protects you, that you fulfil all the requisite legal commitments and that you maintain total control over the purchase of the property.

Reducing costs by reducing assistance from the professionals would be a terrible mistake.

6.Skipping the building inspection

Choosing not to get a building inspection is never a good idea. A building inspection can tell you whether the property has any structural defects, areas of damp or mould, or areas that need repair or re-painting.

For information on how Crown Relocations can help with your move to your new home contact our local office.