Building or buying your first home is a huge learning curve. You will discover new terminologies, new processes and be granted enormous decision-making choices. However, as with anything new, mistakes can be made along the way.
Here is a list to help avoid first home buyer mistakes. Remember, it always pays to be prepared!
1. RESEARCH DIFFERENT LOANS
Know what you want or need in a loan and shop around. Fixed rates, variable rates, redraw capabilities and the length of the loan are all important factors. Make sure the structure of your loan is right for you straight off the mark – this is a long-term commitment!
2. BUDGET ACCURATELY
Take the time to work out what you can really afford. Many people are excited to buy their first home, but forget the extra fees or underestimate the cost of actually owning one. Find out what may be applicable to you including home insurance, stamp duty, moving costs, council rates and transfer fees. Also, be prepared for maintenance costs which will now fall back on you.
3. BANK APPROVAL
Try not to take out new credit while applying for your home loan. The bank assesses how much they can lend you based on your current financial situation and getting another loan during this time can put a strike against your name. Further to this, try not to change jobs while applying for a mortgage. Banks like to see a stable income. If you are thinking of moving jobs it is highly advised you avoid doing so until after your purchase.
4. THINK ABOUT THE FUTURE
It can be very difficult to predict where the future will take you, however it doesn’t hurt to consider possibilities like future children and pets – it is very likely your family situation will change while you’re living in the same house. An extra bedroom or a bigger backyard not only increases your resell value, but can help increase the length of time you live in your home. Make sure the home you choose accommodates for the future-you too!
5. CONSIDER SELLING YOUR HOME
Having finally built or found the perfect home, the last thing you want to think about is selling it. However, your home is an investment, and it is important to think about a time when you may need to sell it. When searching for your home, consider what other typical home buyers may want and accommodate for this if possible. The location is also extremely important, and while your preferences should be paramount, it does not hurt to think ahead.
For more information regarding your home, contact your local Hotondo Homes builder here.