Are you preparing to buy your first home? Congratulations – we know you have been likely dreaming about this moment for a very long time. But before you can relax and enjoy your new space, there are many logistic factors that you will need to figure out. Many first home owners jump into their new purchase far too quickly, without properly taking care of financial factors that could affect them for years to come. Here are the top five mistakes that first-time home buyers make.
They don’t take enough time to save up or pay off debts before purchasing.
Many first home owners don’t realise just how expensive owning a home can be. Even if you have enough money to buy a home or make a down payment, you will need to have even more money saved up to take care of your living expenses. If you are considering buying a home in the next five to ten years, start saving now – it’s never too early. It is also very important to pay off debts before making a purchase, because not only can they affect your credit and your ability to get a loan, but they are also just one more thing to worry about.
They rely too much on online information.
In today’s world of instant information accessibility, it is very easy to quickly find information on home prices and loan rates in your area online. While this is a helpful guideline, you shouldn’t rely on it exclusively when making decisions. You should always work with professionals, like mortgage brokers and realtors, to get high-quality, in-depth information.
They don’t consider upkeep or repair costs to the property.
Not only will you be paying mortgage costs every month, but you will also need to spend money to keep your property in good shape. If you purchase an older property, you may also need to make repairs right off the bat just to make it liveable. This is why it is so important to do a home inspection before making a final purchase. An inspection will catch small problems with the property that you would most likely miss.
They don’t research loans.
Applying for a loan for the first time is incredibly intimidating – after all, what if you don’t qualify? However, this shouldn’t stop you from researching your loan options before you go house hunting, not after you’ve found your dream property. The last thing you want is to find a great home, only to realise that there’s no way to pay for it because you didn’t budget correctly. Going through a mortgage broker like Seajay Mortgage Brokers can take a lot of stress out of finding a loan. We know the lending industry like the back of our hand and have access to a huge range of lenders which will allow us to work out the best loan for your situation.
They forget to budget for the long-term future.
When choosing a home loan, you need to keep in mind that interest rates may increase over time. Many new property owners also don’t budget for upkeep costs over the course of time, which can have a huge impact on your finances.
Buying your first home is a huge step, but something that is incredibly satisfying and rewarding. Planning it out carefully and ensuring that you have a back up plan will make the whole process smoother and a lot stressful. Talk to us today about applying for a loan that suits your needs