Many first-time buyers, and any home buyers for that matter, get caught up in the whirlwind excitement of buying their first home and can sometimes make rookie errors because of this. It’s nobody’s fault- getting your first home is arguably the most nerve-wracking and thrilling time of your lives!
We’ve put this article together to go through some of the most common mistakes that first-time buyers make to help make sure that you don’t get caught out by these pitfalls too.
Not having sufficient savings
One of the most common mistakes that any first-time buyer can make is only saving enough money for a deposit without thinking about the additional fees charged by solicitors or surveyors. But it’s not just legal fees home buyers forget to budget for, necessities like building insurance, council tax, or even furniture can easily go un-thought of.
So, if you are buying your first home and have saved just enough to put a decent deposit down on the home you want, it might be worthwhile making sure you have enough money to cover the deposit as well as having some left over, so that you’re not left in the lurch with all these additional expenses and no way of paying for them!
Not checking your credit score
Having a good credit score is essential for getting your mortgage application approved; by having good credit, it shows lenders that you’re reliable when it comes to your monthly mortgage repayments. If you’re wondering what having a good credit score means, put simply, good credit is having no outstanding debts and being able to pay back any bills on time.
But don’t worry, if you’re credit score isn’t great, there are some pretty easy ways to improve it:
- Get on the electoral roll
- Pay off any outstanding debts
- Build up your credit history- an example of this would be to get a credit card
- Only borrow what you can afford to pay back
Not getting a Decision in Principle
Buying a house is exciting, and as a result many people head straight to home viewings before getting all their affairs in order. A decision in principle is a certificate given by your lender stating how much money ‘in principle’ they would lend you.
The problem with not getting a decision in principle is that, since the housing market is so competitive at the moment, not having a decision in principle could mean you losing out on the property you have. So, before you start hunting for you dream home, get your DiP from your lender because it will make you a more favourable candidate as it shows you have all your finances in order.
Not seeking the help of a mortgage adviser
Going through the process of getting your own home can be stressful when you do it alone. Many people go straight to a bank to apply for a mortgage, meaning they have to sort all the paperwork themselves. But using a mortgage adviser means that all the paperwork will be done for you, and you’ll have someone on hand to help guide you through areas of the process you might be unsure of!
However, mortgage advisers usually charge a fee for their service so it’s worth planning this into your budget when you’re trying to figure out what you can afford.
At the end of the day, getting your first home is exciting and you should be allowed to enjoy the process! But just make sure you’re being cautious every step of the way, to avoid making mistakes that could be costly.
If you do have any questions or just want help getting mortgage ready, speak to one of our advisers who can help guide you through the process.