3 First Time Buyer Mistakes To Avoid

The property market can seem like a complicated place to navigate, especially for first time buyers. However, millions of people have already trodden this path before you, and some people devote the whole of their professional lives to helping those in your position have a smooth ride. 

Therefore, there is nothing to fear, especially if you are aware of some of the most common pitfalls when buying your first home. Of course, getting a reputable first time buyer mortgage broker like Tulip Mortgages should be the best and the first course of action. They will be able help you every step of the way but below are some pointers to bear in mind:

Don’t set your heart on a house before you know what you can afford

It can be tempting to get swept up in the excitement of finding your first home, and start viewing properties right away. However, this is a waste of everyone’s time until you have worked out what you can realistically afford. 

There are plenty of online tools where you can enter your deposit amount and income to get a broad idea of how much you are able to borrow. You could then approach lenders directly, or use a mortgage broker, who will have instant access to a wider range of products, and will be able to give you tailored advice depending on your circumstances.

Not budgeting for the hidden costs of moving

If you are stretching yourself to afford a mortgage and deposit, you will not be happy to learn that moving house involves a lot of extra expense which can be overlooked. If the property you are buying is in England, you will have to pay stamp duty on the value over £300,000, assuming you have never owned a property before.

Conveyancing fees, which are paid to a solicitor for doing all the legal checks and searches on the property, can range from £850 to £1500. You should also have a structural survey of the property carried out by a professional surveyor, which can cost between £350 up to £1,500, depending on the level of detail it goes into.

If you are buying an older property, it is advisable to have a more in-depth survey carried out. This will give you piece of mind that you are paying a fair price, and it will also flag up any issues with the structural soundness of the building.  The surveyors report will make recommendations about any repairs or remedial work which needs carrying out.

You will also have to consider removal costs, buildings and contents insurance, income protection and life insurance, the cost of buying furniture and white goods, redecorating, changing the locks and installing a burglar alarm… the list is endless!

Not keeping an eye on your credit score

You will probably be aware of the importance of a good credit score to help you secure a good mortgage deal, but you shouldn’t take your eye off the ball once you have an offer on the table. 

It might be tempting to take out a loan or credit card before you move, in order to purchase furniture or white goods, but even small changes can affect your rating, so wait until you have moved in if at all possible.