How to avoid costly mistakes when buying a new home

Buying a new home can be daunting, especially if you’re doing it for the first time. Thanks to the large amount of money involved and the long term commitment you’re making, putting your money into property needs a lot of thought, planning and organisation.

All too often, buyers don’t prepare thoroughly enough for the property purchasing process. As a consequence, they end up making mistakes that result in costly payments or unexpected expenses. To help ensure you don’t fall into any of these expensive property pitfalls, we’re taking a look at how you can avoid these common costly mistakes.

Use a mortgage broker

Your mortgage is going to be the biggest ongoing expense you face when buying a property. Securing a good deal is essential if you’re going to repay your loan quickly and keep interest on the mortgage to a minimum.

According to recent research from Comparethemarket, 24% of first time buyers went straight to their bank instead of shopping around for a better value mortgage. Instead of taking the first loan that’s offered to you, get in touch with a qualified broker and find out what else is out there. There can be significant variations between mortgage rates, even between the main mortgage providers. An experienced broker will help you to find the best possible deal on your loan. Why not contact our Financial Services in-house expert: Ross Walker CeMAP - ross@muskermcintyre.co.uk Tel: 01603 627777 - for independent financial advice.

Haggle

Around 15% of first time buyers wish they’d haggled more when agreeing their purchase price. Saving just a few thousand pounds can help to free up your renovation budget and take months off of your mortgage term. Although the seller may not necessarily agree to the lower price you suggest, you won’t know unless you try, so why not put in a cheeky offer and see what happens?

Don’t use up your deposit

Another common mistake that first time buyers make is using up their entire deposit when making their purchase. Although you’ll need to put the majority of your deposit down when paying for your property, keeping some money back will help you to cover the cost of legal fees, surveys and renovations.

Talk to your mortgage advisor to find out exactly how much of your deposit needs to be spent in order to secure your home loan. If you can keep a little of this money back, it will help to ease your financial situation and take the pressure off of your bank balance.

When buying a new property, it’s essential that you do your homework. The more you learn about the various mortgages that are available, the cost of buying property and the renovations your new home will need, the more financially prepared you’ll be for your big move.

Learn more about buying and selling property in the Norfolk area by dropping into one of our branches or speaking to one of the members of our team.