So, you’ve finally taken the plunge to buy your dream home?
Well done with that!
Buying a property although exciting is a very overwhelming and daunting task in itself. (We don’t mean to scare you at all here but only want you to be aware of it.)
Considering it is one of the biggest decisions and the biggest financial transactions one will ever make, people tend to get nervous thinking about it and end up making mistakes.
That being said, we are here to assist you to make an informed purchase decision by shedding light on the six common mistakes all first-time buyers should avoid.
Let’s get started…
- Wasting time by not knowing your budget
Ready to explore the properties out in the market?
Not until you’re aware of your budget and the kind you wish to buy.
If you are already headed on your search with this lack of knowledge, you are doing nothing but wasting your time!
That being said, consider your budget well in advance. Begin your search with the lowest slab of your budget. If you find something desirable, that’s the best thing. And if not, you can always move upwards as the need arises.
But do remember, if you are paying some amount extra for the house you plan on buying, you are actually paying A LOT EXTRA (the extra amount plus interest on it). And, you might not be financially comfortable paying off that loan amount. Doesn’t using that money for some other purpose sound better and wise?
Think about it and decide accordingly.
- Simply ignoring mortgage pre-approval
Deciding your budget for buying a property is one thing and getting a loan approved by the bank for it is another.
There are chances of a difference of opinion. What you think you can afford does not necessarily have to match with what the bank thinks you can afford. Due to some reason, the bank might not be able to match up to your expectations (especially if you have an unstable income or a poor credit record.)
So, it’s always best to have all these things sorted in the beginning itself. Approach the bank and get yourself a loan pre-approved before house hunting. This way you will be saving the time of a lot of people involved, firstly yourself, the seller’s, his agent’s, and of course your agent’s too.
The pre-approved mortgage amount can help you start your expedition in and around your financial circle.
- Lacking the ability to distinguish between the important and unimportant
Well, if you lack this ability and vision, you are in for some serious trouble!
Trouble in purchasing a house of your choice as going this way shall take you forever. (Okay, a little exaggeration here but you get what we mean, right?)
Would you want to lose out the opportunity of owning a property that is otherwise perfect (considering its location, neighbourhood, and other similar specifications) but has some minor wallpaper imperfections and something alike? (We hope not)
Minor imperfections related to wallpapers, paints, or cupboards can obviously be ignored (as you can always get them fixed anytime later easily) over other vital things like location, size, and your requirements of a house.
- Overlooking some serious flaws
Minor faults are fine but DON’T overlook any serious flaws in the property.
And with serious, we mean something that cannot be handled by you either financially or practically.
If there are some major upgrades (like washroom renovation, entire floor repairing or anything alike) that need to be done to the property and you cannot afford to spare your time and money on it, don’t hesitate to back out.
Brian K. Lewis of Compass, who sells $2 million to $10 million homes in New York City says:
“It’s important not to be seduced by the icing on the cake. Ignore the icing and focus on the substance of a home- the quality of the construction and the level of finish.”
- Rushing to quote an offer
We get it, the world today is rapid and in order to attain something, we need to act quickly.
But, that does not mean you rush. Knowing the difference between the two is utmost important.
If you find a home that is appealing and at the same time suits most of your requirements, and you are pretty satisfied with it, don’t just rush to quote an offer at that very moment or day.
Go back home, evaluate all the pros and cons and all important considerations like the neighbourhood, its development, and most importantly, its price.
Just strike a balance between making the right decision and doing it quickly and you will be good to go!
- Finalizing a property in mere desperation
There are chances that things don’t unfold the way you wanted them to. You might have been house hunting for a while and still not come across anything of your likes.
This leads to frustration and desperation.
It’s easy to prioritize your emotions at that point in time and hastily come to a conclusion. Tired of searching for your dream home, you might plan to settle for something you weren’t even looking for in the first place.
In such a case, don’t lose heart and don’t settle for something you don’t want to. Your mental peace and satisfaction mean a lot more than anything.
These are some of the most common mistakes all first time home buyers tend to make. Now that you’re already aware of them, we expect you to act differently and wisely. If you’re looking for someone trustworthy to guide you in the process, get in touch with Res Property Surveyors. They shall be more than happy to assist you!