Top Mistakes First Time Buyers Make
As a first time buyer, the process of buying a home can seem like a minefield. Without doing proper research, it’s easy to become confused and misled. Before you start looking for the property of your dreams, it’s a good idea to learn about the steps involved in purchasing a home.
Without doing so, you may end up making mistakes that you regret. You won’t be the first and you certainly won’t be the last. Here are some mistakes that you should avoid at all costs.
Looking For A Home Before A Mortgage
Many first time buyers get excited about the prospect of searching for their first home. This is completely understandable but it doesn’t serve them well when it comes to realistic expectations. Without finding out what type of mortgage you’re eligible for, you can’t know what kind of property you can afford.
Talking to a mortgage advisor beforehand is a must. Search for a mortgage advisor near me online and see what comes up. The advice you get will be invaluable to you during this process.
Knowing Nothing About Chains
Chains can make the property buying experience frustrating. Many first time buyers expect to purchase a property and move in soon after. In most cases, the process can take months. This is especially true if the buyer is fourth or fifth in the chain.
As a first time buyer at the bottom of a chain, all you can really do is wait it out. This takes a tremendous amount of patience. The more you know about chains before buying a property, the easier it will be to accept when the process takes longer than you initially thought.
Forgetting Building Insurance
In comparison to rent costs, paying a mortgage can sometimes work out cheaper. What buyers neglect to realise is that owning a home comes with more costs. For instance, building insurance is a necessity when you own a property.
In many cases, having building insurance will be a requirement of being given a mortgage. The second that the property has been exchanged into your name, you will be responsible for it. Make sure your insurance is in place before you move in.
Using Credit After Pre-Approval
Being pre-approved for a mortgage and actually getting a mortgage are two very different things. Many first time buyers make the mistake of raking up credit bills once they’ve been pre-approved for a mortgage. However, the slightest difference in your credit score could change everything.
If your credit score sees a decline in the time between pre-approval and approval, you may not get the mortgage you’ve been hoping for. Although it’s tempting to buy everything you need for your future home on credit, refrain from doing so until you’re moved into your new property. Make sure your lenders see you as a safe bet instead of a risk.
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