Buying a home is a big deal. Whether it’s your first property or you need to juggle buying and selling at the same time, you have a lot of things to consider if you want to pull it off. Property is expensive, and most people need help from a mortgage lender if they want any hope of being able to afford it. The process can be long and frustrating, which is why you want to do your best to get it right. If you’re worried about getting it all wrong, you should be aware of some of the top mistakes that you could end up making.
Financial Changes Before Buying
Getting preapproved for a mortgage helps to reassure you that you’re able to buy a property. However, you need to be careful when the time to buy arrives. You can find that you qualify for a mortgage at one point, but a single change in your finances rules you out. For example, buying a new car that you will be paying off for the next few years can make a huge difference. The most important period to watch out for this kind of thing is when you’ve submitted a loan application, or you’re just about to. Don’t buy anything on credit until you’ve had your loan approved.
Failing to Inspect the Property
When you find a property you love, it’s tempting to put in an offer and try to close the deal as quickly as possible. But that would be unwise before inspecting the property to make sure it’s up to scratch. Hiring a home inspector is essential if you want to check that you’re not moving into a property with major problems. Any issues that are discovered might make you change your mind, or you could use them to negotiate a better offer. If you’re going to have to pay to repair something, it’s only fair that you pay less for the property.
Rushing Into a Purchase
You always need to be careful when you buy a property. Even though you’re excited and can’t wait to move into your first home, you should take things slowly to get it right. There’s no need to take the first property that comes along, especially when there could be the perfect one out there for you somewhere. Make a list of essential requirements for your property, separating things that you won’t compromise on from anything that you’re prepared to be more flexible about.
Spending Too Much
You could be approved for a mortgage that’s really a bit more than you should spend. Perhaps you’ve worked out the maximum amount you can pay each month, and you want to use that as your starting figure. However, it’s important to think about the future and what might change. What would happen if you were earning less or had to start living on one income? When you get preapproved for a mortgage, use the amount you’re given as a maximum that you would prefer not to reach. Some people suggest reducing it by as much as 20% to get your real budget.
Don’t make any of these big mistakes when you buy a property. Recovering from some of them can be hard.