Buying your first home is exciting, but with so many complicated steps involved and financial decisions to make, it’s no surprise that first-time buyers make more a few missteps along the way. Luckily, most of these are avoidable with the right preparation and a bit of research and insider knowledge.
Here’s a breakdown of the most common mistakes that people make when buying their first homes, and how you can avoid them.
Not understanding the total homebuying cost
When budgeting, many buyers focus solely on the deposit and monthly mortgage payments. But there are other costs to consider. Legal fees, stamp duty, valuation surveys, moving expenses, and ongoing post-purchase maintenance can all add up very quickly. Choosing a new build home can ease unexpected post-move expenses, as they typically come with fewer repair and maintenance costs.
Skipping mortgage pre-approval
Viewing homes before securing a mortgage Agreement in Principle (AIP) from your lender is very risky – yet many buyers completely skip this step. Imagine falling in love with a property, only to find you can’t borrow enough to cover the price. An AIP is not strictly an ‘essential’ part of the homebuying process – but in addition to providing you with peace of mind, it shows sellers you’re serious and can strengthen your position when negotiating. When getting an AIP, you will require proof of identity, proof of income, and will possibly undergo a soft credit check.
Overlooking ongoing homeownership costs
Even if you have a good grasp on the total upfront costs of buying the property, you still need to factor in council tax, home insurance, utility bills, and unexpected repairs. Creating a buffer or emergency fund can ease the stress of both sudden and ongoing home maintenance expenses, helping you feel secure long after the keys are in your hand. Make sure you start building this fund ahead of time and contribute to it regularly.
Not researching the neighbourhood
It can be easy to fall for a nice-looking property that ticks all the boxes yet completely overlook what’s happening just outside it. Make sure to visit the area at different times of the day and week to check for traffic conditions, the opening hours of shops, recreation, and other amenities, and whether it is noisier at certain times. A beautiful home in an inconvenient or noisy area can quickly lose its shine. If you have kids, see if there are appropriate schools. Also make sure that public transport is adequate for your needs, and whether there are any planned developments (such as airline paths, or new construction) that could disrupt your lifestyle or living conditions.
Good prep is your best protection
Buying a home is a complex process and a potential minefield. However, by preparing ahead, researching carefully, and understanding the full scope of homeownership costs, you’ll be better equipped to make a confident first purchase.
