7 mistakes first time home buyers make

By Irene Gotley,31 July 2017| 3 min read

Buying your first home can be an overwhelming experience. There are so many elements to think of before you purchase, and in many cases some vital actions are often missed. Here's some of the mistakes that first-time buyers can make when purchasing their first home.

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Borrowing too much

Based on your current financial situation, lenders will offer to loan you a certain amount of money in order to purchase your home. However, it is important not to overstretch yourself. Unexpected expences come along and interest rates change and you might find yourself with much higher monthly repayments than planned.

Not preparing or researching properly

Don’t rely solely on real estate agent valuations as you might end up missing out on a home you thought you could afford. It's important to research as much as you can in the months before you plan to buy. Keep an eye on the auction volumes and clearance rates in your desired areas. To get up to date home prices estimates and find the right home for your budget, check out the Lendi's Free Property Report.

Not inspecting the property properly

If your new home is relatively new it may seem unnecessary to pay for an inspector to assess the property, but it's worth it in the long run. Any damages or faults in the structure can result in you having evidence to show the seller and possibly being able to negotiate the final price of the house. You might even decide that your dream house isn’t at all how you imagined it to be and not go through with the purchase.

Missing out on first-home buyer incentives

Make sure that you don’t forget that the government offers incentives such as First Home Owner Grants to help you purchase your first home. This is an important part of the property buying journey and could you save thousands of dollars in fees and duties.

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Misunderstanding the role of real estate agents

Many first-home buyers tend to rely on the opinions of real estate agents, thereby forgetting that the agents are really working for the seller. It’s important to keep this in mind and work around that so that you and the real estate agents are on equal ground.

Forgetting to get pre-approved

It’s good to make sure that you’re eligible for a home loan before jumping right into purchasing your first home. Speak to a Lendi Home Loan Specialist to find out exactly how much you’re able to borrow before you start your inspecting properties. Don’t end up bidding on a property only to learn afterwards that it’s too late and you can’t afford it.

Feeling overwhelmed by additional costs

Don’t forget about the eadditional fees and costs that are involved with purchasing a house. Things like stamp duty, inspection fees, legal and professional financial advice are just some of the additional costs that are associated with home buyers. Make sure you factor these costs into your budget before you start bidding on property.

There are plenty of mistakes you can avoid when buying your first home, including not finding the right home loan. Find a low rate home loan in 30 seconds with Lendi. Compare rates now.

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