Common-mistakes first-time buyers often make

Common-mistakes first-time buyers often make

Buying GPEA 11th July 2024

Navigating a clear path for yourself in the property market can be a challenging ordeal for a first-time buyer. So, we’re here to help identify common errors made by first-time buyers so you can learn from mistakes made by others and not your own. 

Mistake 1 - Placing a minimal deposit on the property 

As hard as it is to save up for a deposit in this day and age, it’s crucial to place the largest deposit you are financially capable of on your first property. Guarantee your financial stability with a steady income and some savings before purchasing your first home. By placing a large deposit down, you can start your property journey with more equity, resulting in smaller monthly repayments. Having a larger sum of money at the beginning also increases your variety of different mortgage deals and better rates. A mortgage is a big commitment that you will be responsible for, so it’s key to take control and place a big deposit. 

Mistake 2 - Only saving enough money for a deposit  

First-time buyers frequently make the mistake of only saving enough money for a deposit, but there are numerous hidden costs involved when buying a property. The extra costs can be solicitor fees, legal fees, moving expenses, or even future renovation costs you may not have encountered. Before you begin climbing the property ladder, do thorough research so you can understand the entire cost of purchasing a property, allowing you to save more. 

Mistake 3 - Not securing a pre-approved mortgage offer  

Planning to purchase your first ever home is a super exciting process. As you begin to view property after property, you are able to discover what you like, want, and need in a home, but before viewing potential first homes, we recommend securing a pre-approved mortgage offer. A pre-approved mortgage offer helps you identify the price of property you can afford, allowing you to become well-equipped when window shopping for your first home. Save up the most you can, boost your credit score, and reduce unnecessary spending to ensure the best possible outcome from potential lenders.

Mistake 4 - Not leveraging a chain-free status 

When joining the property market as a first-time buyer, you don’t recognise how valuable you are with your chain-free status. Sellers and buyers seek out people without chains, as it creates a smooth, stress-free process. Use this to your advantage as a first-time buyer and leverage your position, as this could potentially lead to a better deal. 

Mistake 5 - Not planning and researching ahead  

When you’re a first-time buyer, it can be hard to understand the whole process of purchasing a home. The best advice to take on board is to plan and ensure you complete thorough research about purchasing a property and the extra costs surrounding it. Investigate your potential neighbourhoods, as while your ideal home might meet all your needs, the neighbourhood might not be the best fit for you. Checking the crime rate, local amenities, schools, and transport links are all key to identifying what the surrounding area is like. 

Mistake 6 - Feeling with your heart instead of thinking with your head 

When purchasing your first home, it is critical not to let your heart get in the way of your head. Don't let your emotions influence your decision and make sure you conduct thorough research. Key details from a property viewing could be missed, such as structural weakness or a noisy neighbour. Appointing a property surveyor to complete an inspection of the potential property allows hidden characteristics to be identified, potentially changing your decision. While a nice paint job and good home staging goes a long way, it’s crucial to look beyond the surface to practical features within the home. So, don’t feel with your heart before thinking with your head, make sure you face the facts. 

Mistake 7 - Not asking enough questions 

We get it; you’re desperate to take that first step towards independence by buying your first home and moving in, but it’s vital that you become curious and educate yourself throughout the entire process. This may be your first time buying a property, but it certainly won’t be your last, so ask and learn. 

Contact us

Still unsure about the home-buying process? Contact your local Guild Member today. 

 

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