Five mistakes First Home Buyers make and how to avoid them

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The day you buy your first home will most probably be one of the biggest (and most expensive!) achievements in your life, and is usually finalised after years of careful planning and saving.  However, after enduring rental prices and magnolia walls for most of your adult life, it’s easy to feel the urge to rush into certain decisions.  We have found out five top mistakes that first time buyers make – with some helpful tips on how to avoid them!

Overspending

Don’t get your heart set on yohouseur dream property before you know exactly how much you can afford.  There are several online calculators from websites like Money Supermarket and BBC Homes that can help give you financial guidance.  Also question your current financial situation – can you easily afford your rent each month?  Would any potential changes in your new mortgage greatly impact your bank account?

Relying on just the cosmetics

Does the property you have just viewed look too good to be true?  Ensure that it actually is your dream home by taking a second look around.  Avoid cost inducing issues, such as damp, water or electrical issues that can be hidden around the house by getting a survey completed by a qualified surveyor.  Also, check around your neighbourhood and don’t be afraid to ask people questions.  After all you don’t want to buy an attractive house in an area that you may eventually hate!

Taking advice from your estate agent

You may find that your estate agent will try to give you mortgage advice, however you may discover that they don’t provide you with the full range of choices.  Also, you may be charged.  Websites such as Money Saving Expert have extremely helpful mortgage comparison tables which can give you all the information that you need.

Pay twice!

If you are currently renting, don’t forget that you usually have to serve at least a months’ notice before you can leave the property.  Make sure you time things right and don’t lose money by having to pay for both rent and mortgage during the transition stages.

Underestimating the costs

Saving up the deposit may seem like the most daunting task when buying your first home, but remember to also save for the extra costs associated with buying.  Have you considered stamp duty, solicitors’ fee’s, removal costs, storage costs, estate agents fee’s and so on?  Create a spreadsheet of everything you have to pay for so you can avoid any nasty surprises!

Are you currently facing difficulties in the house buying process?  Or are you already in your dream home and made a few rookie errors along the way?

Image Credits: Wikimedia

About the author

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Chris Norton

Founder of Prohibition, listed in the world's top 30 marketing bloggers and an award winning online PR and crisis management specialist. Co-author of Share This Too.

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