Common Mistakes First Home Buyers Make
Buying your first home is such an exciting time. It’s really easy to get swept away in all the choices you need to make and you can often find yourself exceeding your budget by the time additional costs are added. The last thing you want is for these added pressures to squash the joy of buying your first home.
Once you know the common mistakes first home buyers make, you can then actively avoid them. Here are the things you definitely don’t want to do when buying your first home:
Jump to another Job
If you’re just starting a new job, then you may find it much harder to get a loan for your new home. Lenders prefer those in stable, permanent job positions over those who are in-between jobs or on a contract. If you’re planning to change your employment, make sure you’ve purchased your new home and feel you are secure enough to cover your deposit and mortgage payments as you switch jobs.
Don’t Underestimate the Cost of Living in Your Own Home
You might think because you’re doing a great job paying your rent, you’ll have no trouble covering your mortgage payments. However, don’t forget that you’ll now be responsible for every utility bill, rates bills and maintenance on top of your home’s repayments. Factor all of this into your calculations to avoid being overwhelmed by a financial burden after you move in.
Skip a Detailed Building Inspection
Most lenders will require a property valuation report for their benefit in the loan process but this does not substitute for a detailed building and pest inspection which will provide a level assurance before proceeding with your commitment to buy. You often have the option of the level of inspection you get and many go for the most basic inspections. These focus on structural damage and may bypass checking the function of things inside the home such as the air-conditioning and dishwasher. To avoid any hidden problems with your home, get the most detailed survey possible. It will be worth the investment in the long run.
Don’t Get Pre-Approval Until They Have Found Their Home
People often rely on loan calculators and think that’s enough to know how much they can borrow. However, pre-approval is a must for most lenders. It provides you with the peace of mind knowing that things will transition smoother and faster because you’ve already secured approval for your loan. If you don’t do this, sellers may be discouraged and give the home to someone else who has made an offer and has pre-approval for their loan.
For further advice about buying your first home, speak to a professional mortgage broker. Multi Choice Home Loans in Queensland can help you achieve your first home ambitions. We will take you through the process and ensure you don’t make any of the common mistakes when it comes to buying a home.
For quality advice and services for all things home loans, call one of our friendly local brokers on 1300 36 36 99 or get in touch online.