Buying a house is a very exciting experience but it can be daunting too, especially if you’re a first home buyer. You can avoid making mistakes by learning the common errors that first home owners make. Here are five of them:
1. Not getting a loan pre-approval first
Don't waste your time home hunting until you have checked out your home loan options. Your borrowing capacity will dictate the houses you can afford, so you won’t waste time looking at houses that are out of your price range.
2. Borrowing beyond your budget
Regardless of what you can get approval to borrow, it is important to work out how much you are actually comfortable repaying each month. Borrowing too much could sink you financially if things go wrong. Excessive repayments will also mean that will not be able to enjoy living in your new home as your budget has no room for entertainment or other pleasures.
3. Failing to take into consideration additional expenses
As a homeowner, your mortgage repayments are not your only responsibility. Bear in mind that you will need to pay more than just the cost of the house. Additional expenses will include stamp duty, council rates, transfer fees, moving costs, legal fees, and home insurance to name just a few. Knowing your budget beforehand can help you avoid costly mistakes.
4. Not getting a building and pest inspection
There could be something wrong with your property that’s not visible to the naked eye. No one wants to end up with a property full of defects and problems. Obtaining a building and pest inspection will help you determine the physical condition of the house, as well as saving money on major unexpected repairs.
5. Not getting professional help
Make sure you use appropriate professional services to ensure a smooth and easy process when buying your home. A conveyancer and a professional building inspector are some of the specialists that you should use.
The mistakes above are commonly made by first home buyers. You can save yourself a lot of wasted time, effort and expense by avoiding them.