What Should I Avoid When Buying a Home?
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What Should I Avoid When Buying a Home?
Buying a new home is very exciting, whether you are getting on the property ladder or moving into a bigger family home, but there are a lot of things that can spring up when buying a home for both first-time buyers and experienced buyers. Unexpected issues can be very costly both in time and money, so it’s vital to be thorough in your planning.
Buying a home can be very stressful. If you avoid these common mistakes when buying your home, you should have a smoother journey up the property ladder.
Do Not Spend More Than You Can Afford
“It is so easy to go over budget when purchasing a home,” explains David Beard, financial guru and founder of Lending Expert.
“You have the asking price for a home and you may be inclined to borrow as much as you can. But that is just the sticker price. Do not forget stamp duty, solicitors fees and repairs too. You could easily spend an extra 15% or 20% on top of the house value.”
“Ideally you should look at borrowing an amount that you can afford, whilst also having a rainy day fund and having savings just in case something pops up. Whether it is a broken boiler, new flooring or roof repair, you will be surprised what you may have to spend on getting a new home up to scratch.”
Do Not Buy Without a Home Inspection
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Home inspections help you to make the best buying choices possible. A professional home inspection informs the buyer of a multitude of potential problems with the property. These can include any potential expensive issues such as: damp, unsafe wiring, roofing issues, and structural problems.
A home inspector will also advise you if you should consider further surveys such as appliance checks or termite inspections. It’s really important here to take their advice. The inspectors may suggest that you reconsider buying the property.
However, if your heart is set on a particular property, a poor home inspection report isn’t always terrible news. If your lender is still prepared to give you a mortgage, you could use the negative report as a way of negotiating a lower asking price for the house.
Do Not Buy a House That Needs Too Much Work
“We know that people love a challenge and would like to fix up a house to their personal tastes,” continues Beard.
“A fixer-upper house often appeals to first-time buyers as it allows them to purchase a property at a lower price and maybe in a nicer area too.”
“However, these types of homes prove to be a very risky purchase. What looks like simple renovations can easily turn into professional work that you’ll have to pay for.”
“You should not go into a fixer upper home without experience or professional advice. There are thousands of things that go into a home and it is worth speaking with a surveyor, builder and even an architect and showing them around the house a few times before buying if you have some major work to do.”
Do You Have The Right Mortgage?
“With around 70,000 mortgages approved in the UK each month, it is key to know what kind of mortgage is right for you,” says Beard.
“What are your goals? How long do you plan to be in the property for? What is the economy like? This will determine whether you are better off with a fixed, variable or interest only mortgage - and each one may be beneficial for people in different ways.”
“If you are young and want to get on the ladder, you may look at low deposit or guarantor mortgages or the Help to Buy Scheme.”
“Speaking to a mortgage advisor or broker could really help you determine what you want and how you can get the best rates and make it affordable for you.”
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.
For a free and impartial mortgage quote, you can speak with Lending Expert today on 0161 820 8099 or check your eligibility here for free.