For any young couple or even a single person, the ultimate financial goal is one day owning a house of their own. Many young professionals save money all through their adult life in order to have enough to put down for a deposit, perhaps by the time they’re 30. But when the time is ticking and you feel like you’re inching ever closer to the deadline you set for yourself, a sense of panic can set in. In these circumstances, you may even be tempted to snatch up the first property you see available that’s within your range! While this may be a big mistake, surprisingly it is not one of the most common mistakes first time home buyers make when buying their first property.
Before buying real estate in Reservoir read on to find out the top mistakes first time home buyers make:
Not only does a pre-approval indicate to a seller that you are a serious buyer but it also saves you the heartbreak of falling in love with a property only to later find out that you cannot afford it. Many first time home buyers make the mistake of browsing for properties as soon as they decide to buy a home. This is usually a big mistake because with the property market being as hot as it is right now, the property you chose as your dream home could very well be taken up by another buyer by the time you get your pre-approval.
Once you've gotten pre-approved for a loan, the next step of property ownership is to calculate how much you can afford to pay off. Many first time home buyers make the mistake of borrowing to their limit and then end up hand to mouth in the new house because everything they're earning is going into paying for the mortgage. When setting up a budget for your new house, factor in regular utility bills, grocery money, maintenance costs, entertainment costs, as well as putting money away for savings when calculating how much mortgage you can afford each month. You don't want to end up in a situation where you have your mortgage paid but have no food in the fridge.
Lenders have different terms and conditions, and many will have different interest rates and loan terms. Don’t make the mistake of choosing the very first lender you come across. Just as you’d browse houses before making your purchase, shop around for a lender that offers you the best loan terms, lowest interest rates and minimal lender fees. Also pay attention to their customer service and responsiveness. Moreover, while online calculators can give you a good idea of how much you can afford, never rely too heavily on them. There can be a vast difference between what a bank says you can afford and what they are actually willing to lend you.
The above three mistakes often land first time home buyers looking for houses for sale in Reservoir in hot water. By doing your research and ensuring you have all your bases covered, you will save yourself some rude shocks later.
