Buying a home is an exciting time. You search for weeks, maybe months, until you find the perfect home. But then comes all the hard work like about finding a mortgage, drawing up contracts, and eventually packing up and moving.
Sometimes it’s easy not to pay proper attention to every stage of the first time home buying journey. Making poor decisions when it comes to buying your first home can really take the shine off the whole process, so here are 4 mistakes first time home buyers make and how you can avoid them.
Mistake #1 – Borrowing Too Much
This is a very common mistake that many first time home buyers make – borrowing more than they can really afford.
Being a home owner doesn’t just mean paying the mortgage each month for the next 25 years. You’ll have shire rates, water rates, house insurance, not to mention home maintenance and repairs over time.
Always speak to a trusted mortgage broker, who can help you find out exactly what you can afford BEFORE you start house hunting.
Mistake #2 – Not Getting A Pre-Purchase Inspection
It’s important to know exactly what you’re walking into when you buy your first home.
Even if the property looks perfectly fine, always get a pre-purchase inspection. These inspections are designed to uncover things you may not be able to see just from looking at the house. Has it had water damage, mould problems or a termite infestation?
The inspector will also check all appliances such as hot water systems and kitchen appliances to make sure they are in full working order.
It may seem like an added expense, but a few hundred dollars now could end up saving you hundreds of thousands in the future.
Mistake #3 – Understanding All The Costs Involved
Many people think that if they save a deposit for the mortgage then they’ve got enough to buy a house. Unfortunately that’s just not the case.
There are so many other expenses to think about. These include stamp duty, conveyancer fees, building and pest inspections, mortgage lenders insurance, mortgage set up fees and registration fees.
Mistake #4 – Choosing The Wrong Mortgage
Picking the right mortgage for your circumstances is crucial. A reputable mortgage broker will be able to advise you on the best mortgage for your financial circumstances and lifestyle expectations. With so many different kinds of mortgages on the market from countless lenders, it’s a good idea to do some research and speak to a mortgage broker about what might work for you.
You don’t want to be locked into a fixed mortgage for 10 years if you were hoping to refinance sooner or get a better interest rate later on down the track.
Want advice from a trusted mortgage broker in Joondalup? Speak to LUDA Financial Solutions about how much you can borrow and what the best mortgage options are for your individual circumstances. Get in touch online now or call us on 08 9300 2553.