Traps First-Time Buyers Fall Into 100%
While buying your first house is exciting, there are few mistakes that are often made by first-time buyers. Once you know about them, you are far better equipped to be able to avoid them – and have a much more enjoyable experience.
When you have all of these choices in front of you, it can be hard to know what it is that you really want. And more often than not, people have an episode too many of MTV Cribs and are looking to buy something way more significant than they need. And if you have the budget that can work out well. But if the house is more than 30% of your take-home pay, then you have a real risk of falling behind with the payments.
Most people try to get away with the bare minimum of a house deposit. Such is the excitement to get on to the property ladder, they save up just enough. It is always going to be better to put as much down as possible. This will mean that you are cutting your yearly payments by up to $2000 and in some cases, much more. And who wouldn’t want to save that $2000 instead?
You are going to get plenty of mortgage offers, and a mistake that many people make is taking the first offer. Not because it is the best, has the lowest interested or the most flexible terms – but just because they were first. It often pays to work with a company like https://www.blutin.com.au/
There is a stack of fees that you will have to cover once you close. Here are a few examples of what they might be loan origination fees, recording fees, appraisal fees… In the end, you might find yourself paying up to 5% of the cost of the mortgage. You can tack some fees onto the mortgage, but remember that you’ll be paying interest on the costs for years to come.
Many people want to cut costs, and they view the inspections as a place for that to happen. Unfortunately, if you skip it and find something at a later date, you often won’t have a leg to stand on – and might find yourself fixing a lot of problems. Here are a few places that a home inspector will check:
- Plumbing issues
- Falling roof
- Crawl Space
- Sinking Foundations
- Signs of Pests
They are also great at uncovering hazardous substances, unsafe materials like asbestos too. You can use negative findings in your negotiations too. Because any problems will cost you money to fix.
Home buying can become pretty stressful, and some real estate agents try to capitalize on that and pressure first-time buyers into sales. So where possible, bring support to viewings, and stand firm on houses that don’t meet your criteria.
And finally, make sure that you take a few tours of the local area during the day, evening and weekends too.
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