Mistakes First Time Home Buyers Make
There are many mistakes which first time home buyers commonly make – so here are a few pointers which mean you can hopefully avoid making the same ones yourself:
- Make sure you can afford the home loan; first time home buyer mortgages are a major investment into your future so don’t be tempted into thinking you can really push yourself financially.
- There may be a difference between what you think you can afford and what the bank is willing to lend you – it’s a great idea to get pre-approved for a loan before you think of viewing any properties.
- Don’t forget that there are additional expenses, on top of the mortgage payments to take into consideration, such as property taxes, insurance and repairs as well as normal bills, such as food and utilities.
- Of course you can make a wish-list of what would be included in your “perfect” property but don’t be so picky that you end up losing out on a property in the right area which you can afford, just because the décor may be a little out-dated.
- Try not to be swept away by the fabulous furnishings which the current owner has – they will take those with them when they vacate. If you buy a property whose full potential has yet to be realized, you will be able to add value to it yourself, instead of paying for someone else to do that for you.
- Be willing to compromise on certain issues. For example, there is no point buying a one-bedroom home when you are planning to have children, but do you really need an en-suite bathroom at the moment? First time home buyer mortgages are designed to get you into your first home, which is not necessarily your dream home.
- You should use your own agent or, at least, the buyer’s – do not be tempted to try and purchase without their help. Agents are legally bound to act in your best interests, as well as those of the seller.
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The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.