This is a collaborative post.
As a first-time home buyer, the process of purchasing a house may seem daunting. However, in 2021, more first-time mortgages were approved, with over 400,00 first-time buyers. With this in mind, there are numerous things to consider and plenty of documents to sign. It’s an exciting step that comes with its fair share of stressors. First-time home buyers can make common mistakes when looking for a property and during the initial stages of ownership. If you’re planning on buying your own place soon, keep reading for expert advice on common mistakes first-time home buyers make and how you can avoid them.
Not getting an agreement in principle
An agreement in principle or “AIP” is precisely as it sounds. It confirms a mortgage acceptance valid for around one to three months. This lets sellers know you are serious, that you have started the process, and what your budget is likely to be. While it isn’t set in stone as a 100% confirmed guaranteed mortgage, it can be beneficial when starting your search.
Not understanding how long the mortgage process can take.
Most people don’t realise that the mortgage process can take several months. That’s if you’re in a position to get approved at all. Some lenders, especially if you’re a first-time home buyer, may take longer to process your application than others. This process can take anywhere from 4-6 weeks. This is just for the mortgage approval; once you have agreed to buy a home, the process can take months, from arranging surveys to carrying out the necessary checks and going through the Conveyancing process.
Taking the first mortgage offer you get
Some first-time home buyers make the mistake of taking the first mortgage offer they get. While this may seem reasonable, you don’t know if the lender offers you the best rates until you shop around. It can be highly beneficial to work with a mortgage broker at this point to ensure all of your paperwork is up to scratch and you are getting the best deal possible for you.
Not getting a survey
A survey will let you know what’s actually on your property. It will give you a good idea of what kind of foundation you’re dealing with and if there are any structural issues. The last thing you want is to purchase a home to find out it has many faults you cannot fix due to insufficient funds.
A survey lets both parties know of any minor and major defects on the home, so everyone is aware of the property’s condition. A survey can take anywhere from 1-8 hours to complete, depending on the size and complexity of the home, with the report usually available in 5-7 working days. First-time buyers are recommended to carry out an independent survey for peace of mind.
Conclusion
Owning a home is an exciting life milestone, but also a big responsibility. Being a first-time home buyer means you have a lot to learn and might make some mistakes along the way. That’s okay as long as you learn from them. Remember that buying a home isn’t something that happens overnight, and the more prepared you are for the home-buying process, the easier it will be.
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