Many first-time homebuyers are bound to make a mistake or two when buying their first house. This includes forgetting to check their credit and the biggie, underestimating costs. Usually, the excitement that comes with owning a home becomes fertile ground for these errors to occur. Statistics reveal that there were 353,436 first time property buyers across the UK in 2019. this figure is expected to rise by the end of this year. These are the things to be mindful of in your quest to get your foot on the property market ladder.
3 Mistakes for First-Time Home Buyers to Avoid
Shopping for a Property Before Applying for a Mortgage
Some get overly excited and begin their house hunting before they know what they can afford. Big mistake, it’s a complete waste of time and disappointing if you discover you can’t afford what you’ve been looking at.
It’s important to know your budget before you start looking for a home. Be realistic, you don’t want to take on unnecessary and unmanageable debt by buying something you can’t afford. Every first-time homebuyer’s goal is to find a property that they can comfortably pay for in monthly repayments.
You’ll need to know what you can get in terms of a mortgage. In order to do this, you’ll need a mortgage broker to take you through the processes of pre-qualification or pre-approval. Your pre-approval takes into consideration your expenses and income. There are plenty of mortgage brokers that can help you and these days you can speak to them online as well as in person.
Don’t underestimate the Costs of Homeownership
The expenses accumulated from a home purchase doesn’t always end after ownership. Besides your monthly mortgage payment, there are other costs that you’ll be responsible for, such as the cable bill, water bill, electricity bill, etc. You’ll also have to consider property taxes. In the UK, you pay stamp duty at the point of purchase. However, if your property is below £40,000, you will have a 0% rate.
A home valued from £40,000 to £125,000 attracts a 3% rate, while above £125,000 up to £ 250,000 comes with a 5% tax. The higher the value of the property, the more tax it demands. The estate agent should be able to give you details of this.
Never Ignore a Property Survey
Every home must be checked out or surveyed by a professional. This is especially important for brand new properties. As indicated in the introduction, some first-timers get emotionally attached to the property to the extent that essential checks are ignored. A survey can reveal structural problems, anomalies with the HVAC system, serious plumbing issues, dampness, subsidence etc. Getting a professional property surveyor to assess the home now will save you easily avoidable and needless costs in the future.
You can now enjoy your first owned home in peace, knowing that you guarded yourself against these common mistakes. Purchasing a home may probably be the most significant investment you make, so it’s vital to get it right.
Now we’ve looked at 3 Mistakes for first-time home buyers to avoid, what tips would you give to someone buying their own home?
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I would say that even if you see a property that is really beautiful inside to not be blinkered by this and look beyond that such as if the electrics are safe and up to date.
Yes, that’s a good tip. It is important that it is safe or the safety issues are something you can fix easily.
This is very useful! So hard to know everything when buying your first.
It really is. Loads of info here to help though.
Yes! I wish I had know some of these when we bought our home. There was so much I didn’t know.
It’s crazy isn’t it and very overwhelming. Glad to hear you’ve bought your first home already.
Great advice! Buying a home is very stressful so I’m all for simplifying as much as possible.
It can be especially the first time!!!!
Great tips and these are something that some buyers ignore most of the time. Don’t be satisfied with the beautiful look and color of the house, instead check something beyond that look.
That’s very true. It can easily fool people into overlooking things they shouldn’t which they then need to deal with once the property is theirs.
This will be very helpful for those who are planning to buy their homes. It’s great to know the things that we need to avoid.
It helps to be aware of things and to talk through with friends that have been through the process.
Nice tips. Anyone who’s planning to buy one, should read
Thanks for visiting. I’m glad you liked the post.
Anyone who’s planning to buy their home for the first time should read this. Thanks for tips.
Thanka Nikki. I have had some experience in the area and have helped others. It helps to have someone that’s experienced.
I would definitely do things a little differently when looking for a home. It is hard to know what you want in a home when you are a first time home buyer, and it is good to have tips like these so you don’t end up making mistakes.
It can be hard the first time but then making sure you do plenty of prep can really help.
I agree with these tips as a recent homeowner myself I definitely agree don’t start shopping before you have a mortgage in principle.
That is very important. You may find you don’t get approved for the amount you want when you find one and waste money on surveys for a house you can’t afford.
I know that I will buy home only once. That’s why it good to be informed and to be well prepared. Thanks for these tips!
It sounds like you need to prepare well then. You never know where life will take you. Good luck x
We might not be buying a house in the near future but thank you for the tips. Will keep them in mind.
I agree about these tips too. It’s so important to be careful when buying your first home. Buying a home for the first time can be both fun and scary.
I didn’t know about the surveys, good information to know since we will be buying a new property soon
This post is really informative, thanks for sharing these tips.
This will be very helpful for those who are planning to purchase a home for the first time! Thanks for sharing this.
Thanks for visiting Maggie. Hopefully this post will help people planning to buy their first home x