Common first time buyer mistakes
We want all the moments of tension and uncertainty to melt away as soon as you secure your new mortgage and move into your ideal first home, which is why we have put together a list of some of the most common first time buyer mistakes and will run you through some of the things that you can do to avoid ending up in a potentially challenging situation.
Don’t risk becoming homeless!
There is always the possibility that your exchange will be delayed so although holding on to your rental might mean that you will be paying both your mortgage and rent for a month or so, you can be sure that you won’t have to unexpectedly put your belongings into storage and sofa surf or temporarily move in with your parents until you can move into your new property.
This will only place additional strain on what is already a stressful experience, so give yourself some breathing room and always factor in the possibility of delays.
Beware of chains
Don’t neglect buildings insurance
Buildings insurance will cover the cost of repairing or rebuilding your property if it is damaged by an event that you are covered for, which can include a flood, storm and/or fire. It will also cover permanent fittings and fixtures such as your bathroom and kitchen. Some policies will also cover outside structures that are connected to your property, including garages, fences and pipework.
Don’t risk being hit with a potentially costly repair bill by failing to organise the appropriate level of coverage for your property before you have even had the opportunity to spend your first night in your new home.
Avoid applying for credit and making purchases on credit
It is also possible for a lender to rescind their mortgage offer so until you have the keys to your new property firmly in your hands, don’t open any new credit accounts. This doesn’t mean that you can’t indulge in a spot of window shopping for your new furniture, just delay the actual purchases for a short while.
Don’t shop for a house before a mortgage
As a first-time buyer, it is likely that your priority is to purchase your ideal first property and secure a loan with a monthly payment that you can comfortably meet each month. After all, you want to be able to enjoy your property and not have to spend sleepless nights worrying about how you’re going to afford to pay for your home.
Entering a few basic details into the Mortgage Hut affordability calculator should give you a good indication as to how much you could afford to borrow but it is always a good idea to also approach an experienced broker who will be able to use their knowledge of the marketplace to help you to secure the best deal.
Shopping for a mortgage is similar to shopping for any other expensive product in so far as it will always pay to compare a range of offers. Fees, interest rates, discount points and closing costs will all vary from lender to lender and your mortgage adviser will help you to access the best deals for your circumstances. They will also ensure that you are aware of all the different government-backed schemes that you could be eligible for. This process might reveal, for example, that you could potentially benefit greatly from the Help to Buy Equity Loan scheme by securing a new build mortgage on a newly built property.
Don’t underestimate the cost of home ownership
In addition to your monthly mortgage payment, you will also need to set aside money to cover things like:
- Your energy bills
- Internet connection
- TV packages
Don’t forget, you will also need to keep on top of the general maintenance of your property and if you want to undertake any improvements or renovations, you will need to factor this into your budget.
The value of Mortgage Advisers
Our experienced mortgage advisers will take you through everything from interest rates to deposit requirements and run through what your monthly outgoings will look like for a variety of suitable mortgage deals.
To do this, your adviser will look at both your circumstances and interest rate developments and draw upon their knowledge to provide you with personalised advice that should give you the confidence that you are making the right decisions.
Remember, advisers have a comprehensive understanding of the marketplace and although it is impossible to accurately forecast which direction future rates will move in, the advice of a good adviser is invaluable if you want to secure the best possible deal.
If you are looking to secure a first time buyer mortgage and have any queries or questions you would like to pose to a mortgage expert, why not contact The Mortgage Hut today on 02380 980304 or make an online enquiry.
Because we play by the book we want to tell you that...
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1.5%, but a typical fee is 0.3% of the amount borrowed.