Buying your first home is one of the most significant financial decisions you will make in your life. It’s also an incredibly exciting time! If you’re a first time home buyer, take a moment to read the following tips. Take care to avoid the following home-buying mistakes and you’ll save time, money and a whole lot of heartache further down the road.
Not Being Adequately Prepared
You know that buying a house is expensive, right? But do you know about all the costs associated with a first time home buyer loan and moving house? Just some of the things you need to consider are Transfer Registration, financing fees, Lenders Mortgage Insurance, legal costs, home and income insurance, inspection and pest reports, stamp duty, and council rates. You won’t necessarily need to pay all of these costs, but you do need to keep the true cost of buying a home in mind.
Not Having Pre Approval From a Lender
Get your finances in order before you approach a lender for a first time home buyer loan. Ask your lender for a pre-approval letter so you know exactly how much you can borrow. That way you can focus your attention on the properties you can afford – and avoid wasting your time on those that are unsuitable.
Failing to do Enough Research
When you know how much you can afford to borrow, go ahead and carry out independent research into the area where you want to buy. If possible, take a drive there and investigate suburbs and individual streets. Will you be able to get to work easily? What facilities does the area have? Find out what plans are in place for the area’s future, look at auction results in your local paper and online, and see what properties are selling for in your preferred areas.
Not Speaking to a Lender in Person
It’s fine to begin your search for mortgage information online, but you should speak to a lender in person to find out about all of the first time buyer mortgage options that are open to you. You can also ask about any First Home Owner Grants that might exist, whether you qualify for a no-deposit home loan, and if you will need to pay stamp duty on your purchase and are entitled to any exemptions or concessions. If possible, talk to a lender who has been recommended by a friend or family member that you trust.
Deciding against a Home Inspection Report
To save money at an expensive time, it can be tempting to choose not to have a professional pre-purchase home inspection report carried out on the property you intend to buy. This is not a wise decision and could be a very costly home-buying mistake. If you come across major problems with the house when it’s too late and the contract is signed, it will be up to you to pay to put them right. Apart from the expense, there might be defects that are detrimental to your health and wellbeing, so you should always opt for an independent building inspector to carry out a report. You should also opt for an independent pest inspection to identify any issues with critters or rodents that might not be visible to the naked eye.
When weighing up your options for buying a home, consider a house and land package, or a new build home where you can customise certain aspects to achieve a home that is perfect for you.
True Value Homes are a family-owned company with decades of experience of building homes. We design and construct homes that come complete with generous inclusions and represent real value and quality. Get in touch with us to find out more.