Buying your first home can be the biggest decision and purchase you will make. This is why its important to do it right from the start, and avoid mistakes that may cost you money and disappointment. Here are 5 common mistakes made by first home buyers…
1. Not securing pre-approval
One of the first things you should do once you decide you’re going to buy your first home is to get pre-qualified for a loan. This way you will know in advance how much you can afford and what the lender will loan to you. You will also be ready to act once you spot your dream home.
Make sure the pre-approval from your lender is put in writing, giving you the confidence and means to make an offer on a home or bid at auction.
2. Not doing your research
Failing to understand the market and exactly what properties are worth could be your downfall in securing a property at the right price. There are lots of places where you can research property prices. Look at auction results in newspapers or on the Internet, speak to local real estate agents regarding recent sales purchase a professional sales report for the suburbs you are interested in. Such reports give a detailed analysis of sales on a street-by-street basis.
3. Not being familiar with the sales process
Before you start your search, be aware of the practicalities of buying a home. For example, read up on how auctions work, the best way to go about making an offer, what to look for when buying property, and real estate agent tricks and traps. Speak to friends and family about their experiences.
4. Letting your emotions get in the way
While the search to find your home will be an emotional one, it’s best not to let your emotions get in the way when it comes to transacting a purchase. This especially rings true when it comes to auctions, as under the circumstances, it’s easy to get carried away. If you feel too emotionally attached and feel you will go over your budget, consider having someone else do the bidding for you.
5. Going beyond your means and budget
As a first home buyer (and this rule applies to anyone buying property), you should never go above your budget and financial means. If you do, it may affect you and your family’s short-term and longer-term financial situation. It’s always better to play it a bit safer and think about events that could happen in the future, for example job loss or interest rate rises.
To see more visit http://finance.ninemsn.com.au/pfproperty/buying/8125766/ten-costly-mistakes-first-home-buyers-make