10. Yes, 10 mistakes people can make when buying a home.
With that out of the way, on with the video.
Number 1Not getting a realistic idea of what your budget truly is. Just because you believe you can afford the payment on a mortgage, doesn’t mean you’ll be granted the borrowing you require to purchase the properties you’ve been looking at. A lot of people make the mistake of using an online mortgage calculator and think “Well my rent is higher than the mortgage payment, it’ll be fine”.
Wrong. It doesn’t work like that.
Contact a Mortgage Broker, like myself or the lender directly to find out what you can realistically buy, before wasting days on end viewing properties you’ll never be able to buy.
Number 2Looking at rates only from 1 lender
If you decide to arrange the mortgage yourself without professional help, don’t just look at 1 lender.
A common mistake a lot of people can make is believing the bank whom they have a current account with will offer them the best interest rates.
Whilst on occasions this can be true, it is often not the case.
Also opting for the lowest interest rate. Just because the interest rate is the lowest, it doesn’t necessarily mean this is the cheapest product over the term.
There may be other costs to consider such as valuation fees, product fees and booking fees.
So make sure you’ve carried out thorough research before committing to a mortgage.
Number 3Not keeping your cards close to your chest. You’re potentially going to be bidding to purchase this property. What you do not want to do is tell the person selling the house, be it the owner or estate agent that it is your dream home.
If they know this is your dream home, then they will feel that you’re thinking with your wallet and not your head. What I mean by this is, you’ll pay whatever it costs to make sure it is yours. If you really must compliment the property, go as far as saying “You have a lovely home” but leave it at that.
Number 4Having a quick look around to be polite. Don’t do it.
This might be someone else’s home, you might not want to be intrusive but remember, they put the property on the market to sell, they have let you in to view the property.
You need to make sure it is the right property for you. You should go back for 1 more visit at least. Often you’ll walk out of a property wishing you’d looked in the cupboards to see if there is enough storage or checked the small bedroom would be big enough for a home office.
Check the property, and check again!
Number 5Not holding spare funds back.
Do not put all your money into a property. Bad move.
You’ll need to hold some funds back for Stamp Duty, conveyancers, mortgage broker fees, and possibly a removal company.
Not only that, hardly anyone walks into a property that requires no amendments to suit their needs and tastes. You’re going to want to make some adjustments and you’ll need the money to do this.
Do not take out any additional finance, unless you’ve already disclosed to the lender you’ll be obtaining a loan or credit card for home improvements, you’ll be in breach of the mortgage terms by taking out extra finance after the mortgage has completed.
There are terms and conditions surrounding this. Speak to a professional to get more information.
Number 6Viewing too many properties in a short space of time.
Viewing properties can be a lot of work. It can all end up as a bit of a blur.
This leads me on nicely to number 7
Number 7The mistake a lot of people make is trying to build a dream home from all the properties they’ve recently seen.
Wanting the kitchen from that property, the garage from this one, wanting the lounge from another property. The master bedroom from a different one.
If you piece together all the best parts of each property, you’ll find that your dream home isn’t within your budget.
You aren’t always going to be fortunate to land your dream home straight away, but once you’re on the housing ladder, you can build up to it.
As you get older, your dream home may even become your worst nightmare. Mine for example would be having a huge garden with lots of plants. I hate gardening but I once wanted a big garden!
Number 8Viewing a property alone. Especially if you’re a First Time Buyer.
Sometimes we can get emotionally invested in the properties we’re viewing and not think clearly. I believe the term is “not seeing the wood for the trees”.
You should take someone else with you, who can give you a bit of independent advice.
I would also advise you to take someone along with you who is an experienced homeowner who knows what problems to look out for.
Number 9Trying to negotiate the price whilst you’re standing in the property.
This goes hand in hand nicely with keeping your cards close to your chest.
Take the time to view other houses in the area with a similar price range before discussing the price with any estate agent.
You’ll appreciate the fact that you went home to take in what you’ve just seen, and then you’ll be able to approach negotiations realistically with a clearer head.
Number 10Avoid upsetting the seller.
It has been known for people to make negative comments in front of the person selling the property.
Comments like “I don’t like the wallpaper, we’ll change that”
“This room is too small, we’ll knock it through to make the 2 rooms into 1 bigger one” are not want the seller wants to hear. The person selling the property has decorated the property to their taste.
This has been their home.
They may not even want to sell the home but due to personal circumstances such as bereavement or financial difficulties so save these types of comments for when you’ve left the property.
If you want to buy the property but you’ve upset the person selling it, they may not be favourable to you when deciding whose offer to accept.
Please feel free to get in contact with me if you need any further help. My details are in the description below.