First-Time Buyers? 10 Mistakes To Avoid
You’ve made the decision to buy your first property and you’ve saved the deposit. The expert team at Pump Sales Direct have rounded up some of the common first time buyers mistakes you should try to avoid.
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Not finding out how much you can borrow
Do not make assumptions about how much you can borrow, without checking first. Remember that lenders will decide how much to lend you based on both your income AND your outgoings. Even if you have a high salary and a large deposit, you may still be offered less than you expected, if you are deemed to be living beyond your means. To avoid disappointment, get an idea of how much you can borrow before you start looking at properties.
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Not using an independent mortgage advisor
Many estate agents have in-house financial advisers. You are not obliged to use these advisers. But many first time buyers are unaware of the other choices available to them. Or they believe that they stand a better chance of getting a mortgage approved with the estate agent’s advisers. In actual fact, you may be missing out on a wider choice of deals by not looking further afield.
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Failing to draw up a list of property priorities
Draw up a list of property essentials, such as number of rooms, proximity to transport, schools, your place of work etc. Begin your property hunt online, on sites such as Rightmove, and get a feel for the type of property that works for you. After this, move on to more specific things such as outdoor space, construction era, period features and other “nice to haves”.
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Failing to think long term
There is a good chance that in a few years, you will be thinking about selling up and buying something bigger or better. Think long term about how easy it will be to sell on. Avoid, for example, flats in high-rises or over commercial premises, and those with short leases or of non-standard construction. However tempting the price, properties like these are better for buy to let investors.
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Letting your heart rule your head
You’ll want to find a property you love, but this is the one time you should let your head rule. If you aren’t sure that you can be totally objective, take a level-headed and eagle-eyed friend with you on the second viewing to help spot potential minefields.
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Not paying attention to detail during viewings
It’s easy to get carried away during a house viewing. So take care not to get so distracted that you don’t notice potential red flags. Listen out for noisy roads, access issues, lots of clutter denoting lack of storage space, and even signs of problem neighbours.
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Rushing in with an asking price offer
As a first time buyer with a pre-arranged mortgage, you are at the front of the queue of buyers. Your chain free position also gives you a negotiating edge. A bit of research to see how long the property has been on the market, and how quickly the sellers need to proceed, will also give you greater haggling power to possibly get the final purchase price down.
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Relying solely on a mortgage valuation
Remember that your mortgage lender’s valuation is not a survey. It does not offer you any protection should something turn out to be seriously wrong with the property. Neglecting to get a proper survey before exchanging contracts could cost you a lot more than the few hundred pounds you are trying to save
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Underestimating how long the process will take
Having your offer accepted does not guarantee you’ll be skipping down to your estate agents to pick up your keys. Many purchases take 12 weeks or more. So if you are renting your current property, take care not to make yourself homeless by giving notice too early.
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Not getting buildings insurance after the exchange
In the UK, once you have exchanged contracts on a property, you take legal responsibility for it. This means that you bear the risk should something happen to the property after exchange. Purchasing buildings insurance will cover your costs should the unexpected happen.
Once you’ve finally got the keys to you brand new property, don’t forget to get a list of local suppliers for all those jobs that are needed to make your house your home.
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