Buying your first home can be a hugely exciting adventure, however, it can also come with its share of challenges. Many first-time buyers make mistakes that can have long-term consequences, from rushing into making a decision to underestimating hidden costs. The journey to homeownership can be full of potential risks. Read on to discover five common mistakes that first-time buyers often make and learn how to avoid them.
Not setting a realistic budget
One of the most common mistakes made by first-time buyers is not setting a realistic budget. You need to work out exactly how much you can afford to spend on a property, taking into account your income, savings and monthly expenses. Stretching your budget too far could put you under serious financial strain in the future, especially if your circumstances change. Work with our property solicitors in Essex to set a budget that aligns with your financial situation and goals. This will ensure that you can comfortably afford your mortgage payments each month.
Failing to get a mortgage in principle
A mortgage in principle, which is also known as a Decision in Principle (DIP), Agreement in Principle (AIP) or mortgage promise, should be obtained before making a full mortgage application. This is an indication from a lender of how much they are willing to lend you based on your financial situation and credit history. Whilst it can be tempting to rush in and make an offer on a property, it’s not wise if you haven’t yet secured a mortgage in principle. You may waste time viewing properties that you can’t afford.
Underestimating extra costs
Buying a house is an expensive endeavour, with a variety of extra costs beyond the purchase price. Many first-time buyers underestimate how much they’ll need to pay for solicitor fees, stamp duty, survey costs and moving expenses. Failing to budget for these expenses can lead to financial strain at a time when you’re already making a significant investment. Make sure you factor in all potential costs when planning your budget for buying a home.
Ignoring property surveys
Many first-time buyers make the mistake of ignoring property surveys, thinking they can save money by bypassing this step. However, surveys are crucial for identifying structural defects or other underlying issues with the property. If you fail to get a survey carried out, you could end up buying a home with problems that will be expensive to rectify. There are various types of surveys available, ranging from a basic report to check its general condition to more comprehensive surveys such as a HomeBuyer Report or a Building Survey.
Not researching the area
Many first-time buyers make the mistake of failing to research the area when buying a home. They focus solely on the property itself, imagining themselves cooking in the modern kitchen or relaxing in the garden on sunny days. However, it’s essential to consider factors such as proximity to amenities, local services, schools and public transport. Take the time to visit the area at different times of the day to get a feel for your new surroundings.
Our experienced property solicitors in Essex are on hand to assist you if you’re ready to buy your first home. Call us on 01268 692 255 or 01702 436 453 or send us a message via the contact form on our website.