Buying a house is never easy, especially for the first time. And, there’s a lot of common mistakes first time buyers make. Learn how to avoid them, right here.
Getting your first house is hard. There are loads that you need to consider before taking your first step into the property market. But, for first time buyers, it’s not easy to navigate the market on your own. There are some common traps that all first time buyers fall into, simply because they’re not aware of what the mistakes are. So, that’s why we’re here to help. We’re here to make sure you don’t make the same mistakes so many other first time buyers do.
We’ve spoken to Zing Mortgages, a leading mortgage broker in Chelmsford and Essex, asking them about the common mistakes first time buyers make. In this post, we’re going through the five most common mistakes made when buying a house for the first time. By understanding what these mistakes are, we’ll help you learn how to avoid them, so your house buying journey is a little bit smoother. So, let’s get into it.
5 House Buying Mistakes
1. The Research
The first mistake a lot of first time buyers make is not researching the property market or even where they want to live. Whilst most normally start with seeing their dream home and then looking around online, there’s so much more that goes into buying a house than just researching what one you want. It’s about looking at the area, looking at local crime rates, pollution levels, you need to make sure that 1. You can afford to live there and 2. That it’s somewhere you want to live. When looking at buying your first house, make sure you look into everything surrounding it.
2. The Timing
Okay, so whilst you might feel that you’re ready to buy your first house, it’s not entirely down to you. There are a few external factors that make up whether it’s the right time to buy your house. It’s looking at things like the housing market, interest rates, the economy and whether you can get the amount you want for your mortgage. Buying a house when the economy isn’t great can mean you’ll be overpaying for a property, and if the national interest rate is high then your mortgage is going to cost you more. So, sometimes it’s important to bide your time and wait. Whilst it may be bleak now, waiting means that you won’t overpay for a property and a mortgage and you can save for a larger deposit too, which leads to our next point.
3. Your Deposit
What some first time buyers do is jump into purchasing with a small deposit – which can affect how much you can borrow. Whilst the average deposit you need for a house is around 10%, whilst there are some places that offer 5% mortgages, it’s normally for help-to-buy schemes. Some put down anywhere between 10-20%, but the more you put down the cheaper your mortgage will be. Why? Because it means you’ll have to borrow less. Which makes repayments on your mortgage cheaper. In fact, you can put down as much as you want on a deposit, there is no limit. But the more you put down, the better off you are. So, make sure you have enough and, if you can wait, save and put down a little more.
4. Your Credit Score
One thing that is interlinked with your ability to get a mortgage is your credit score. So, it’s no surprise that not checking this is something a lot of first time buyers make. If your credit score doesn’t meet your lender’s strict affordability checks, you could risk not having your mortgage approved. Which isn’t good. So, it’s important to closely look at your credit score, in relation to your mortgage. You’ll be able to see if it’s good or bad. More importantly, you can check it for anything that might be affecting your credit – like fraud, financial links to someone with bad credit or even just an error on your report. By constantly assessing, you can work to improve it or have these errors removed. Good credit means you’re more likely to be approved, so make sure you understand and check your credit!
5. Your Mortgage
Whilst it may seem ideal to go with any mortgage, there’s actually loads of different types out there. And the problem is, most first time buyers jump once they’ve found a deal they think they’ll be approved for. However, there’s a whole market out there, and might be a deal or mortgage type that is better for you. So, when it comes to getting a mortgage for your first home, it’s important to shop around. There’s tonnes of face-to-face mortgage brokers, that don’t charge a fee and online brokers too. Which means, you can find your ideal mortgage for your new home.
Avoid making these mistakes to ensure that your house buying process runs smoothly!