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So, you’re buying your first home! Whether you’re buying with a partner, or a friend, or buying solo, this process can be daunting. We’ve put together this blog to make the whole process a little easier by highlighting common mistakes for you to avoid.
What are the common first-time buyer mistakes that you should avoid?
Keep reading to learn more about these common mistakes first-time buyers make and how to avoid them yourself in the future.
Saving for your first home isn’t just about ensuring you have enough to pay for the deposit and your monthly mortgage payments; there are many hidden costs when buying your first home that may pop up unexpectedly, such as conveyancer fees. Be prepared by reading the following common financing mistakes.
When you are looking at putting an offer in on your first home, getting a pre-approved mortgage shows sellers you are a serious buyer and that you can secure a mortgage, therefore making it more likely that the home purchase is completed.
Pre-approval will also give you a clear understanding of what you can expect to borrow for your mortgage and, therefore, allow you to budget accordingly. This will help you plan for, and avoid, the following common mistakes!
Once your pre-approval is obtained for your mortgage, your budget can be set. Remember, moving into your new home is fun and exciting, so make sure you have enough disposable income left over, after all of the fees and bills are paid, to enjoy it!
Mortgage calculators, like this one from Barclays, can help you estimate what your monthly mortgage payments could look like. Be sure to utilise tools like this to be prepared for what your monthly outgoings could be – Is this feasible?
There are many government schemes available to help first-time buyers, which are outlined here in our helpful blog.
Skipping research like this can result in a loss of opportunity and knowledge.
The best tactic to prevent going over budget is to plan everything. Ensure you are aware of all hidden costs, what your monthly outgoings will look like once you have moved in, and save for more than just your physical home furnishings like carpets and appliances are easily forgotten about.
Using financial planners like the ones from Papier can help you keep your goals on track.
When you are saving for your first home, you want to be sure you aren’t just funnelling all of your money possible into your “house savings”. Planning is a key aspect of purchasing a property, so it’s important not to rush or skip this research.
Lifetime ISAs are a popular method of saving for your home; however, these accounts have deposit limits, which can be frustrating. It is therefore recommended to have multiple savings accounts open and to designate different plans for each.
How much of your savings you allocate to each different savings goal is very personal. Ask yourself: What is most important to me right now? For example, if you are looking to purchase your first home in the next year or two, are holidays abroad a necessity?
The pie chart below outlines the possible savings pots you could use. This ensures that, once your house fund is empty, you will still have plenty of savings under your belt.
Mortgage companies are very strict when it comes to who they approve of, naturally, as your mortgage is one of the biggest loans you can take. A key factor mortgage companies look for is your credit score, as this tells them if you are a responsible, reliable client. The higher your score, the better your chance of approval.
First-time buyer programmes can be extremely helpful when purchasing your first home. You may be able to purchase a home for 30-50% below market value. This is called the Government First Homes Scheme.
The home can be:
There are limits to the scheme – new build First Homes cannot cost more than £250,000 (or more than £420,000 if the property is in London) after the discount has been applied. The local council can lower this maximum price.
Learn more about the first-time buyer schemes available here.
Like any big decision, make sure there is no page unturned. Most commonly, terms related to payment issues, understanding your interest type (fixed or variable), or your Annual Percentage Rate (APR) are misunderstood. If this is an area you aren’t familiar with, be sure to ask family and friends, or even an expert, to help you understand.
Skipping a home inspection can be a costly mistake due to any potential hidden issues; you want to make sure you know exactly what you’re paying for, and not have any unpleasant surprises on move-in day!
Some key areas to check can include the following:
For a full snagging checklist, see our helpful guide here.
We know how exciting moving into your first home can be, but patience is key. Rushing the process can lead to missed opportunities or potential regrets, both of which are so crucial to making sure your home is everything you want it to be.
According to the National Association of REALTORS® 2024 Profile of Home Buyers and Sellers, it was found that the following three steps of purchasing a property were found to be the most difficult:
Read some of our customers’ personal experiences here, where you can find useful advice from people who have been in your shoes.
Being thorough in your decision-making is crucial; skipping research can lead to regrets further down the line, which is not what you want. Keep reading to learn what research should be done on your area and personal goals before making the purchase, along with what questions should be asked.
Meeting your neighbours can give you a heads-up on any social issues in the area. Such as if the council is helpful, or are there any local issues? But, more importantly, this can make your whole experience more comfortable, having a few friendly faces can make all the difference if you are moving to a new area.
It is good to be aware of the area you are moving into, what are the crime rates like? How safe is it? Or even finding out about the amenities in the area, what shops and supermarkets are there?
All these external factors can play a massive role in your new chapter, make sure you know what to expect when you move in, and make sure this suits your lifestyle.
Buying your first home is one of the biggest life steps you can take; therefore, it is hard to ensure you are planning ahead for the next goal. Be sure to research what schools are in the area and their Ofsted results. Is there a good doctor’s surgery nearby or a veterinary practice?
One of our top tips is always to have a household emergency fund. Whether you find a leak in your roof or your oven has broken, always be sure to plan for unforeseen expenses that come along with being a homeowner.
So, you’ve prepared yourself as best as possible for anything that could trip you up on your home-buying journey, now enjoy it! If you’ve followed our helpful guide and planned effectively, you should be able to focus on the thing that really matters – your exciting new chapter.
Ready to take the leap? See our range of properties for sale here.
If you have any questions or queries about anything to do with your new home, do not hesitate to contact our specialist team, who will be happy to help you every step of the way.
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