Five Common Mistakes Of First Home Buyers
Getting ready to buy your first home? It’s an exciting time, and it’s easy to make mistakes. Here are five common ones that you should try to avoid!
1. Relying only on advice from family and friends
Family and friends are people you can trust, so it’s understandable that you listen to their advice. However, while they may have the best of intentions, it’s always best to seek independent professional advice when buying a property. Things may have changed a lot since your mum and dad purchased their first home, and your circumstances are likely to be different. They may also have made mistakes without even realising it.
As a first home buyer, you’ll want a team of experienced professionals in your corner. That means a reputable mortgage broker, a solicitor or conveyancer, plus a building and pest inspector. A good accountant can also be invaluable, particularly if you are self-employed.
2. Blowing the budget
The last thing you want is home loan repayments you can’t really afford – you might end up eating baked beans for years to come! That’s why it’s so important to have a solid grasp of your financial situation and budget.
Mortgage brokers can help you understand your borrowing power and create a home-buying budget. That will help save time when you start looking for your dream home.
3. Underestimating the costs involved
Many first home buyers don’t understand the full costs involved in buying a property. There’s a lot to consider – your deposit, stamp duty, lender fees and charges, solicitors fees, and so on.
Then there are the ongoing costs associated with home ownership. These may include rates, insurance, body corporate fees, maintenance, and repairs.
4. Getting the wrong mortgage
As a first home buyer, getting your head around all the different home loan products out there can be overwhelming. Offset accounts and redraw facilities. Fixed versus variable rates. Split home loans and lines of credit. It’s enough to give you a head spin! It’s important to choose the mortgage that is most suitable for your needs and saves you as much money as possible.
A mortgage broker can: 1) understand where you’re at financially and where you want to be; 2) compare the home loan market; 3) find you the right home loan, based on your specific financial circumstances; and 4) walk you through the home loan application process.
5. Being blindsided by emotion
When you’re new to the property hunt, it can be easy to let emotions cloud your judgment. However, try not to let your daydreams get in the way of the facts. Do your research to ensure you’re buying the right property for the right price.
With careful planning and support, buying your first home will be a positive experience. A mortgage broker will you every step of the way and can refer you to other professionals you can rely on. Download our First Home Buyer Guide or get in contact with Coronis Mortgage & Finance let’s make your home ownership dream a reality!