Hindsight is a wonderful thing and something I wish I was blessed with before we started our home-buying process. It is such a special experience, especially when it is your first home. But there are bound to be a few bumps in the round. Here are 5 mistakes we made as first time buyers (and hopefully some things for you to avoid):
”Hindsight is a wonderful thing but foresight is better, especially when it comes to saving a life, or some pain!” William Blake.
Not calculating out how much you can afford
Knowing how much you afford is possibly the most important step in buying a house. And possibly one of the biggest mistakes we made as first time buyers. It should be the first thing you research and will determine the value of properties you view. Most importantly it will avoid disappointment further down the line.
Actually knowing how to calculate what you can afford is another matter. There are a few places you can start your research.
There are calculators online, which produce estimates based on financial information you provide. These should be used as guidance only. It might over or under estimate what you can actually afford.
The next step is to get in touch with a mortgage advisor. Mortgage advisors collate real time mortgage offers based off your personal information. You can find mortgage advisors locally online or approach local estate agencies (who might also employ brokers).
Not understanding credit scores
Even if you have no idea what a credit score is, if you re-pay furniture on finance or have a credit card, then you will have a credit score.
Basically it is a numerical figure assigned to you based off of your credit history; i.e. debt, accounts and repayment history. Essentially lenders want to make sure you are reliable enough to loan money to. They check that you can pay off your credit card each month, or are committed to re-pay debts that you owe.
When you apply for your mortgage the lender will do a credit search and it will help your application if they see you are reliable when it comes to making repayments.
Spending all your savings on the deposit
There’s no hiding the fact that buying a house is expensive. I’m sure there’s lots of us out there who are mainly saving to buy their own house one day.
The most expensive part of buying a house will be the deposit. This is a portion of the property price that you pay prior to completion (getting the keys to your house). The exact value of your deposit will depend on the value of the property and the mortgage loan you can secure.
The smallest deposit that you can pay is 5%. Usually the larger the deposit you pay the better the mortgage deal. Our mortgage advisor always told us to make a deposit in 5% increments (i.e. 10%, 15%…).
However there are other fees that you have to pay. This will usually be a minimum of £2000, if you are first time buyers. Although if you’re no longer first time buyers it can easily be as much as £5000+.
Remember: You don’t have to pay stamp duty as first time buyers!
Make the most of this and take your time finding your dream house! Stamp duty is easily thousands of pounds. Why waste your stamp duty exemption on a house you know you would want to move out of in a year?
Not only do you have fees to pay but it’s a good idea to have money saved for ‘just-in-cases’. ‘Just-in-case’ the boiler breaks on day 1 (yes- that happened to us). It is your responsibility to pay for repairs in the property. You never know what you might have to fix when you move in.
Overlooking issues in the property
Buying a house is such an exciting time. One of the best parts has got to be going on property viewings, right?
Looking back we overlooked a lot of problems on our property viewing. It might be that you don’t mind hidden problems because you love the property so much. However it is in your best interest to go in to property viewings with your eyes wide open.
Make sure you check out my post below on things to look out for when viewing a property.
Don’t panic though, you can ask a surveyor to inspect the property as well. They can advise you on issues they detect in the property. No house is perfect but if there are major issues it gives you room to negotiate with the sellers or withdraw your offer.
Underestimating the timescale
Buying a house is not an overnight process. It will take time. It’s easy with all the excitement to become impatient. Remember there are lots of stages to buying a house and lots of people involved.
We were told that the quickest house purchases take a minimum of 6-8 weeks. That’s if you’re lucky. 3-6 months is much more realistic. Keep telling yourself though that it will be worth it when you finally get the keys to your new home.
Final thoughts..
In the end, buying a home for the first time is a huge learning experience, and mistakes are almost inevitable. By sharing the mistakes we made we hope to help other first-time buyers avoid the same pitfalls. Homeownership is a journey, and while it comes with its share of challenges, each lesson learned is a step toward making wiser, more confident decisions in the future. So, remember to take your time, stay informed, and never be afraid to ask questions. With a little extra preparation, you can avoid these common mistakes and feel more empowered in your home-buying journey.
Happy house hunting!
