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Buying a house? Don’t make these mistakes
For most of us, buying a house is the biggest purchase we’ll ever make and, bar a select few, we’ll have to rely on the largest of loans in order to make it a reality. It’s unnerving stuff, and that’s before we even consider some of the potential mistakes that can happen.
In reality, searching for and buying a house is an enjoyable, exciting – albeit exhausting – experience. The sheer scale of the finances are simply a natural part of the process. No matter how unworldly they may seem to mere mortals like you and I.
As a result, mistakes can be made, and sometimes they can be costly. We’ve picked out 5 house buying errors you’ll want to avoid. So, before you make the short-list of potential abodes, grab a pen and paper and make a list of a different kind!
- Borrowing too much
It really is tempting. You sit down with your mortgage lender and they pull up the maximum figure you could borrow, based on your earnings. The houses you’d previously considered out of range are suddenly within budget… aren’t they?Technically, they are. But if you borrow the maximum amount on offer, you will be stretching you earnings and the monthly mortgage payment will dominate your outgoings. You need to eat and, occasionally, treat yourself, so borrow realistically!
- Forgetting additional expenses
Buying a home is expensive, but not solely because of the mortgage. There are fees upon fees and it is easy to overlook the upfront cost of getting your hands on that key. The deposit is the most obvious, but legal fees, removals and a cash reserve should be budgeted for.
- Not paying for professional removals
This one comes from personal experience. Of all the things I had to pay for during my last house purchase, professional removals was the best investment. By far. Without that team, the move day would have been stressful and dangerous. Also it would probably have tainted what should be (and indeed was) a joyous occasion.
- Being inflexible
Unless you’re a millionaire, you won’t have the luxury of picking your perfect home. Concessions will have to be made, whichever home you choose. It might be a busy road or a rather small main bathroom, but if everything else stacks up living with the downsides isn’t so bad. Holding out for the 100% perfect home is a fruitless task and will only prolong the house buying process.
- Going cheap on the survey
Unless you’re buying new, you’ll be buying something which is second hand. It’s a big ‘something’, too, so paying for a thorough survey is money very well spent. On top of all the other fees, it may seem like ‘just another expense’, but it is among the most important. Find out what it is you’re intent on buying; a survey will uncover the stuff that could cause you great expense in the not too distant future.