PROPERTY EXPERT REVEALS THE 8 MOST COMMON FIRST TIME BUYER MISTAKES
Buying your first home is an experience filled with excitement, but it can also be one filled with confusing bureaucracy and decisions.
From conveyancing to gazundering, there are all sorts of terms you may never have heard of before – it can be daunting.
However, given this may be the most important purchase of your life, you need to ensure you get things right. Otherwise you risk losing money, time, or the place of your dreams.
These worries are increasingly common amid the current turbulent property market, with Google searches for ‘what to know when buying a house’ rising by 130% in the last month alone.
So to help you navigate the complicated process, and ensure it’s as smooth-running and stress-free as possible, property expert Terry Fisher at We Buy Any Home has revealed eight of the most common mistakes to avoid as a first time buyer.
Most common mistakes first time buyers maker, and how to avoid them
Making hasty decisions in excitement
Once you’ve viewed a property you love, it’s natural to feel excited. But it’s important not to let your emotions cloud your judgement unless you want a bad case of buyer’s remorse.
According to Terry, by getting swept up in the idea of your dream home, ‘you could end up overpaying or missing out on opportunities for a better deal, or overlook issues within the property that could end up costing a lot of money to fix once you’ve moved in.’
He recommends looking at what else is available on the market, having a full survey done, and researching the area of the house to check it suits your needs and lifestyle.
Try not to rush any decisions, looking at the facts logically and asking plenty of questions.
Not compromising on your wishlist
While a wishlist is a good place to start when house hunting, you’ll likely have to wait a long time to find the ‘perfect’ property that ticks all your boxes – that is if it even exists.
Terry says: ‘Be prepared to adjust your “must-haves” and turn them into “nice-to-haves”, and be more open to different types of properties and neighbourhoods that you may not have considered before to expand your search.’
Looking above your budget
There are two outcomes to looking at properties you can’t actually afford.
‘The first is that you’ll fall in love with a home that you know you can’t afford, and every property you look at afterwards won’t be able to live up to it, so you’ll be disappointed at every viewing,’ explains Terry.
‘The second is that you’ll buy something too expensive and regret it when you can’t afford to actually live there.’
Save yourself the disappointment and limit your search to realistic, in-budget homes from the start.
Not checking your credit score
One of the first things mortgage lenders will do is look at your credit history, and what they find could make or break your purchase.
The key is to beat them to it and look at your score before they do, as this way you can deal with any issues ahead of time.
Terry advises: ‘Check your credit report and confirm that all the information is correct; if you find any errors or inaccuracies, dispute them immediately, as correcting mistakes can have a big impact on your credit score.
‘Make sure your credit score isn’t be influenced by anyone else; old joint accounts with partners or flatmates can be dragging down your score if their credit score is bad, so ask for outstanding links to be broken.
‘The sooner you can improve your credit score, the more smoothly the mortgage application process will go.’
Not saving enough for hidden costs
The deposit isn’t the only thing you should be aware of when it comes to saving to buy.
‘There are some extra costs that you might not have considered,’ says Terry.
Although first time buyers are eligible for some relief on some things (like stamp duty on properties up to £425,000 in England, Land and Buildings Transaction Tax on properties up to £325,000 in Scotland, or Land Transaction Tax on properties up to £250,000 in Wales) extras like conveyancing fees, survey fees, mortgage fees, valuation fees, and even removal costs need to be factored in.
Make a list of everything you need to pay or are eligible to claim back so you can get a clear idea of your total budget.
Being afraid to haggle
Terry says: ‘A lot of sellers will be open to negotiation, and you could be paying thousands more than you need to by not trying to get the price down.’
While it can seem intimidating to negotiate, it could save you cash and give you confidence going forward with the process, so consider giving it a go.
Not having an emergency fund
Alongside the deposit and extra fees (which you should have factored in) an emergency fund can save you a lot of hassle.
‘Unexpected expenses come up, like a broken boiler or leaking roof, or a change in financial circumstances that means you’ll struggle to keep up with mortgage payments,’ says Terry.
He suggests keeping some money aside for a rainy day, protecting your future self from crisis.
Trying to do everything alone
‘Mortgages are complex, and there are many different types available, so it can be difficult to understand which one is best for you,’ says Terry.
‘A mortgage advisor will be able to assess your financial situation and recommend the best mortgage for you, as well as helping you compare different mortgage deals and secure rates that you may not be able to get on your own.’
As mortgage applications can affect your credit score, going it alone could hurt your chances in the future, adding even more weight to a professional opinion beforehand.
Make sure to lean on the expertise of solicitors, surveyors and others with industry know-how to steer clear of common pitfalls too. It’s what they’re there for after all.
Do you have a story to share?
Get in touch by emailing [email protected].
For your weekly property newsletter, for the latest news, features and advice, sign up for Metro's The Key newsletter
2023-11-10T14:18:23Z dg43tfdfdgfd