Staying Ahead of the Real Estate Trends

First-Time Homebuyers? How to Avoid Making Any Critical Mistakes

6 June 2018 by Jimmy Carr

If you've just returned from your honeymoon, you may quite literally be coming back down to earth. You're so excited about your future together and one of the first big steps is buying a home. This can be a daunting task at the best of times, but it does not have to be a chore so long as you bear in mind several important points before you begin. What areas should you discuss between you, before you move ahead?

Being Sure

You may have discussed your joint finances and fully believe that you can qualify for a certain amount of home loan, but before you even look at any properties you need to formalise this and talk to lenders. Get it from the horse's mouth, so that you know precisely how much you will be able to procure. This will help you to avoid falling in love with any properties that you won't actually qualify for.

Rainy-Day Funding

It's never a good idea to borrow as much as you possibly can, stretching your finances by definition. Certainly, this may allow you to get a home with some additional amenities, but it will not give you any money for a rainy day and especially will not allow you to make some critical improvements after you move in. It can be difficult to predict the future, but you should give yourself a buffer whenever possible.

Say What You Want

Don't rely completely on real estate agencies, but do be proactive. The agencies will certainly help you to find some great possibilities, but you need to tell them exactly what you want. The more information you can provide, the more the agent can go to work and do their magic.

Inspect Carefully

If you do come across something that strikes your fancy, make sure that you get a prepurchase inspection report drawn up. This is particularly important if the home is older, as you don't want to encounter any major repair jobs after moving in. This report is compiled by an independent inspector and you should ask him or her to check for termite infestation, as well.

Extra Costs

Don't forget about the additional costs payable whenever you close on a home. These may include transfer fees and stamp duty and you may need to put down deposits so that you can open utility accounts. You need to budget for moving costs as well and pay for home insurance before you move in.

Stay Grounded

Try not to let your heart rule your head during the whole process. This can be difficult, especially if you begin to dream about a certain property and how it would fit your needs perfectly. Remember that you should look at this as a business transaction and this will help you to keep your feet on the ground.

It's Teamwork

Finally, always surround yourself with experts in their field, whenever you are embarking on this journey.

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