Want to get through the home-buying process with minimal hiccups? Here are some of the most common mistakes first time buyers make:
8 mistakes that first-time buyers make:
- Only saving enough for a deposit
- Not getting a pre-approved mortgage
- Not looking beyond the surface
- Not exploring your neighbourhood
- Making an emotional decision
- Not asking enough questions
- Not looking into first-time buyer schemes
- Not getting a mortgage adviser
1. Only saving enough for a deposit
So you’ve spent an eternity saving for your house deposit - job done, right? Well, not quite. While your house deposit will take up the majority of your house-buying budget, this is only a piece of the puzzle. You’ll also need to save up enough for legal fees, solicitor fees and the costs of moving home!
If you don’t take into account these added costs, you could leave yourself stretched financially, so think tactically about how you can save for your deposit - set targets, and saving strategies and look for ways to cut your current spending.
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2. Not getting a pre-approved mortgage
Caught up in the excitement of home-buying, it is quite common for first-time buyers to forget about getting a pre-approved mortgage. While it’s not a hugely exciting process, getting a pre-approval helps you work out what kind of house price you can afford. Once you’ve got your mortgage pre-approval, you’ll be much better equipped to start shopping around for your dream home.
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3. Not looking beyond the surface
When you’re on the search for your first home, it might be tempting to dive in with the first appealing apartment you see. However, try to look beyond the cosmetic features of your home. While a nice paint job and fancy furniture can go a long way, pay closer attention to the practical features of your home.
For example, are your appliances in good working order? Is the layout of your home fit for purpose? While cosmetic features can be changed at a later date, things like the location of your home need to be addressed in the present.
4. Not exploring your neighbourhood
Your home might fit the bill for what you’re looking for, but don’t forget to think about your neighborhood! Unless you plan to spend most of your day-to-day life indoors, the area you choose to live in is hugely important.
You’ll want to do a proper scouting report on the area’s crime rate, local amenities and access to transport links. Take these factors into consideration, and you’ll be well on your way to a stress-free, convenient lifestyle.
5. Making an emotional decision
When you first walk through the doors of a property, you might be so swept away by the beauty of the apartment that you want to part with your hard-earned cash then and there. However, while picking a home can be an emotional decision, try to think with your brain rather than your heart!
Instead of dreaming about your future in this dream apartment, pay closer attention to the details – for example, how much does it cost, and where is the home located?
6. Not asking enough questions
We get it - you are desperate to buy your first home. But try not to rush into the process without learning everything you can about the process! If you don’t ask enough questions about a property, you could end up missing key details like additional costs, a noisy neighborhood or even structural weaknesses. When it comes to the huge financial investment of home-buying, no question is a stupid question.
7. Not looking into first-time buyer schemes
Imagine spending ages buying your first home, and then finding out there was a faster, cheaper alternative. To avoid a strong sense of FOMO, do your homework on what home-buying schemes are available for first time buyers. While Shared Ownership can help you buy a home with a smaller initial deposit, London Living Rent is a great option for people looking for breathing room to save up for a future home.
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8. Not getting a mortgage adviser
If you are buying a home for the first time, it might be tempting to handle your mortgage application alone to save money. However, getting a mortgage advisor can make the process go lot more smoothly.
A mortgage adviser can help guide you through the boring paperwork, and decipher things you can’t quite get your head around (which, as a first-time buyer, there will be a lot of). Buying a home for the first time is difficult enough as it is – going in alone will only make it more difficult!
Still unsure about the home-buying process? At Peabody, we aim to make buying your first home as smooth and stress-free as possible. With a range of Shared Ownership and Private Sale options, you’ll find a home and area you love in no time.
