When you’ve never done something before – it doesn’t matter whether it’s buying your first home or driving an auto for the first time – you’re going to make mistakes. When it comes to big life decisions, mistakes can be costly and have long term consequences. As a first time home buyer, here are 9 typical mistakes that you should avoid:
Dipping into their savings
Banks will want to see that you can save for a deposit, over and above your rent and will require evidence of such.
It may be only an occasional flutter on the horses or a Premier League accumulator, but banks will take a dim view of online gambling habits.
Loyalty to their bank
People think that if they’ve been with the same bank since they were students that the bank will favour them, but in reality, their bank will not treat them any differently than if they simply walked off the street.
Getting into a bidding war
The worst thing you can do is to get into a bidding war with other buyers. You may really want the property, but the only person who wins in a bidding war is the seller of the property.
Not spreading costs
Some first time buyers see a 30 or 35 year mortgage as a life sentence and may be keener to reduce the term. However, you can change the terms of your mortgage at any time, the important thing is to get in the door and to ensure that you can easily make mortgage repayments even when rates inevitably go up or your circumstances change.
Stretching too far
Don’t stretch your finances to get your ‘dream’ home. A first home should be well within your budget and more often than not it will be a modest abode.
Skipping the survey
You might fall instantly in love with a house and want it at all costs, but it can’t be overstated the importance of getting a qualified, independent structural surveyor in to assess the property.
Fools rush in
Don’t make your first bid at or above the asking price, no matter how much you want the property, all you’ll do is drive the price up.
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