Buying your first home can be a complicated process with a lot of steps to take, several interested parties involved, including the seller, estate agents and solicitors, to deal with and a lot of money involved.
With so much going on, it’s easy to make mistakes that can cost time and money. At Aria, we want to make buying a house as straightforward as we possibly can for our clients, so here is our guide to mistakes first time buyers should avoid.
Not checking your credit rating.
Having the cleanest possible credit report will make it much easier for you to get approved for a mortgage loan and will affect how much money you will be able to borrow, so it’s important that you make sure you access your credit report and take any steps needed to get it ready for a mortgage application. You can read our guide to improving your credit report here.
Not doing enough research.
There’s a lot of information you’ll need to know and understand when you’re buying a house. When it comes to applying for a mortgage there are a lot of questions you need to answer. What mortgage products are available? What deposit do I need? How much can I afford to repay every month? But it doesn’t end there. Make sure you have researched the house buying process and look into the property itself. How old is it? Does it need any work? What is the housing demand like in the area?
Not getting pre-approved for a mortgage.
It‘s not uncommon for prospective buyers to start looking at properties in a particular price range only to discover later that they won’t be able to borrow a big enough mortgage. This can set the whole process back while you reassess your budget and start looking all over again. To avoid this it’s a good idea to contact you chosen lender and ask for a ‘mortgage in principle’. This is a statement from a bank to say that would lend you a certain amount of money and will help you to clarify your budget.
Not getting a survey done.
Sometimes buyers will avoid getting a proper inspection done on a property they plan to buy. Sometimes they want to avoid the expense, other buyers fall in love with a particular property and rush to finish the deal. It is important to get a survey done, however. While the house may look superficially like it’s in good condition, a survey will reveal any hidden damage, like rotting floors, a leaking roof, or rising damp, which could affect the value of the property or cost you more to have fixed.
Underestimating total costs.
We’ve already talked about mortgage costs, but there are many other expenses you might have to cover when you’re buying a house and when you’re living in it. When buying, you’ll need to cover solicitors’ fees, survey costs, mortgage processing fees, and possibly Stamp Duty. Once you’re in the house you’ll have to pay for building insurance, council tax, utility bills, TV
licence and any maintenance costs, which you might not be paying in rented accommodation. Before buying it’s important to work out exactly how much you can afford to pay in living costs and budget accordingly.
Once you’ve checked your credit rating, worked out your budget and spoken to your bank, you’re ready to find your perfect home. Contact Aria Residential online at www.ariaresidential.co.uk
or visit us in one of our branches on the Lisburn Road in Belfast or in Templepatrick and find out how we can help you get your perfect home.