If you’re looking to get on the property ladder, here are some helpful home truths that could help you avoid a costly mistake.
Stepping over the threshold into your first property is an exciting and memorable moment.
However, first-time buyers (FTBs) can waste valuable time and money by making any of these common homebuying mistakes.
Not doing your sums
Many FTBs start property hunting without a concrete idea of their budget.
They either waste time looking at properties that are out of their reach or underestimate their spending power.
It’s best to do your sums first (don’t forget to include costs such as stamp duty, legal fees, and removals) so that you can make decisions based on hard facts and figures.
Given recent changes to lending criteria and interest rate cuts, it’s essential to know where you stand (you may be pleasantly surprised).
Failing to get a mortgage in principle
Don’t assume that showing up to a viewing is enough to convince sellers that you mean business.
The best way to signal that you’re a serious and proactive buyer is to have a mortgage in principle (this is also sometimes known as an agreement in principle).
This document, issued by a lender, indicates the amount the institution is willing to lend to you.
Although it’s not legally binding, it shows sellers that you’ve done your homework.
So, once you’ve done your own budget calculations, contact lenders or speak to a broker, and get a mortgage in principle.
Losing track of priorities
Buying a property is an emotional transaction, and if you’re not careful, you can lose perspective.
This can lead to paying more than you should for a property or failing to recognise the true potential of a home because you’re hung up on one easily rectified element.
The best way to avoid either scenario is to identify a handful of non-negotiable housing priorities. Draw up a list based on your current needs and what your life might look like in five or ten years’ time.
When viewing properties, stick to your guns on these top priorities. But be willing to compromise on other areas that aren’t as critical.
Looking to make the transition from renter to homeowner? Contact us today, we’re here to help.
If you’re planning to list your home, call us to arrange a free valuation.
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