What are the three biggest mistakes first-time homebuyers make when looking for a new home? If you're buying a house for the first time, this article is perfect for you. Read on to know what they are and know the simple ways you can avoid them!
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As a first-time homebuyer, you probably have a list of things you're looking for when it comes to choosing your dream home. You likely want a beautiful house with amenities that suit your or your family's needs.
There's nothing wrong about wanting a lovely looking house. But when you focus too much on what the house looks like, you might overlook a more important criterion in house hunting — evaluating the neighbourhood.
When you're looking for your first home, it's essential to take a step back and look at where it's located. Ask about the neighbourhood's culture and values, and make sure these match your own.
By focusing too much on the home you're buying, you might end up in a neighbourhood you don't like. Remember, it's much easier to make adjustments to your house rather than changing the prevailing attitudes of a community.
How to avoid this mistake: When you're looking for a house, don't forget to ask about the neighbourhood, too. Talk to your property manager about the crime rates and school districts in the area. Time how long it takes for you to travel from your work to the house. You can also get a feel for the public transportation and traffic system in the area by visiting at different times. Get a sense of what the community is like by chatting with your potential neighbours.
Getting a mortgage from the first and only lender you speak to is one of the biggest mistakes you can commit as a first-time homebuyer. Think about it, when you shop for other things like clothes and necessities, don't you take time to scout for options before making the final purchase?
When you settle for the first and only bank or lender you talked to, you miss out on other opportunities that could potentially offer better rates than what you're currently being offered. Having a conversation with other lenders or institutions gives you a feel for what deals are out there and which among them suits your budget.
How to avoid this mistake: When you're buying a house for the first time, and you need to take on a mortgage, talk to at least three lenders first. After you've talked to at least three of them, compare the fees, rates, and terms they offer. Take into consideration their responsiveness and customer service, too. Getting in touch with a lender that offers affordable prices and quality customer service leads to better transactions later on.
Perhaps the biggest mistake a first-time homebuyer can commit is to buy a home that's beyond budget. When you buy a home that you can't afford, you run the risk of losing it, especially when times get rough.
Remember, you're not just buying a house. You're also purchasing the property's future maintenance later on, so it's vital to buy within your means.
When you're assigning a budget for your new home, make sure to give yourself some room to breathe by factoring in your monthly bills and expenditures. This way, you get a real sense of what houses you can afford.
How to avoid this mistake: Aside from factoring in your monthly bills and expenses, it's also important to shift your focus on how much you'll be paying your mortgage lender per month as opposed to the maximum loan value they'll grant you. Ask yourself this: you may have qualified for a $1,000,000 loan, but can you comfortably afford to pay for it? If the answer is no, you might want to consider looking for houses at a lower price point.
While these three biggest mistakes first-time homebuyers make are common, there are also simple ways you can avoid them altogether. When looking for a house, don't forget to learn just as much about the neighbourhood they're in. Also, remember to stick to your budget and look for a lender that can match what you can afford. With these tips, you'll be stepping into your dream home in no time.
A9 Property is a team of property specialists helping first-time homebuyers and property investors on their journey into the real estate market. Our weekly real estate blog touches on industry trends, market shifts, and investment strategy, providing you with valuable insight into your property purchase journey. We are experts who specialise in off the plan properties–a popular investment strategy in Brisbane and Australia. Check out our carefully selected portfolio of off-market properties for sale or contact us for an obligation-free chat to discuss the best strategy to start building your portfolio.