Congratulations! If you’re on this blog, you’re ready to move out (hopefully) and buy your first home! Even better for you, you’re exactly where you need to be to learn about the mistakes all first-time buyers make. AND even better (yep, it gets better!) you’ll know how to avoid making these common mistakes – oh, we’re so good to you…
Welcome back to Zing’s blog, this week we’re going through the top 5 mistakes all first-time buyers make. They say knowledge is power, so armed with the knowledge of these mistakes, you’ll be able to side-step them, and have a smoother ride towards your first home.
Here’s our list of mistakes, and how to avoid them…
First-time Buyers’ Mistakes
Mistake 1: Not doing your homework
Most first-time buyers see the house of their dreams and think ‘hey, I want to buy that’. Although, the house’s price may not always match your budget, it can be disheartening, but it’s when you need to start researching potential first houses. That means, looking at the area, prices and more – because going in to the housing market blind is not ideal. You need to know all you can about what sort of price you want to pay, as well as knowing the neighbourhood (literally). That means knowing pollution levels, crime rates and everything about the area, because this is where your first home will be, and if you want to sell, these could impact your house’s value. It’s always important to research before you buy your first home.
Mistake 2: Buying at the wrong time
Yes, you read that right. There’s a wrong time to buy a house, but luckily there is a right time too. Your homework needs to extend past researching the property and local area, and you need to look into other factors that will affect the price of a house. This means, knowing about the current economic climate, as well as the housing market too. High rates of unemployment can affect mortgage rates, and the housing market can be a fickle thing too. Like we said, you can’t go in to buying without knowledge of the area, housing market and more. Patience is a virtue, so wait for a better economy and housing market before you jump in and buy – you might even be able to save up a bigger deposit too (which leads us to…)
Mistake 3: Not saving enough
We’ve said it above, but whilst typically you only need around 5-10% of the house’s price, as a deposit, saving more can put you in a better position. Saving more deposit means that you’ll have to borrow less, which means you may pay back slightly less over the lifetime of your mortgage (because, your mortgage will be smaller). If waiting and saving a little longer is an option, make sure you do. It will benefit you in the long term.
Mistake 4: Avoiding your credit score
As with any financial product, you’ll need a good credit score in order to qualify for a mortgage. Because, it establishes your reliability as a borrower, mortgage lenders want to know their investment is sound with you. A better credit score means better mortgage rates for you, which is ideal because who wants an expensive mortgage? It’s key to make sure you review your credit score frequently, to avoid being rejected from your mortgage lender, because your credit rating isn’t up to scratch. There are tonnes of free websites you can use to check your credit score, from sites like Noddle and Clearscore, you’ll receive your free credit report to see where you stand.
Mistake 5: Taking the wrong mortgage deal
When it comes to getting a mortgage, you need to shop around. Find the right deal for you, because this mortgage will be with you for most of your life. Seek help from an Independent Mortgage Advisor, to get fair impartial advice about the best mortgage for you. Once you think you’ve found the best deal, visit our Mortgage Calculator, to see what you could borrow from us at Zing. You might find a better deal…
Avoid these mistakes to make buying your first home a little easier! Don’t make the common mistakes most first-time buyers make.
If you’re ready to buy your first home, and have avoided these mistakes, get in touch with the Zing team to get yourself a mortgage!