To purchase a home can be an exciting yet daunting process for those home purchasers especially for those first home buyers. We have listed out the top 5 common mistakes you should avoid based on our past thousands of application experiences.
1. Overthink and not taking any action
Like anything you try the first time, fear always tends to take over, but finding a property has a certain process that you can follow. Like learn anything new, the key is to learn the process by researching and asking lots of relevant questions. The first step is to stop just thinking about it and get in touch with experts such as trusted mortgage advisor(s) who can take you through the process step by step.
2. Poor preparation
When you purchase a home, it is very important to sort out your finance properly (e.g pre-approval) as it will help you to determine what price range you are able to afford. Arranging suitable mortgages can be a highly skilled and detailed area, preparation with proper analysis and options could result quite different outcome. In general, the more research and proper preparation you do, the better the outcome.
3. Putting offer on the wrong home
It is important to conduct necessary due diligence on the property, especially when you are attending for auctions. The due diligence process might include getting a qualified builder look through the property, finding a lawyer to look through a Lim report and all files relevant to the property, obvious checks for example looking for repairs, look under the floor dampness etc.
4. Interest free credit card and hire purchase
When managing financial options, it can be difficult to say no to those tempting consumer loans for example interest free credit card or hire purchases. However, just be aware that they are all part of your liability which might impact your borrowing power and prevent you from getting the best possible home.
5. Only choosing the lowest rate and highest cash contributions
Every bank from time to time will offer lowest fixed interest rates and cash contributions, however, a mortgage with a bank can be a long-term relationship, so it is important to take into consideration your own financial current and future plans to ensure other factors are taken into account rather than only current offered pricing package.
We have helped thousands of clients who have purchased their dream home and you can be the next one. Have a chat with us now!
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