Mistakes First Home Buyers Make (And How To Avoid Them)

If you're considering buying your first home, congratulations! This is an exciting time in your life. However, it's important to avoid making common mistakes that can end up costing you time and money.

In this blog post, Caine Real Estate explores five of the most common first homebuyers' mistakes and how to avoid them. So read on and learn what you need to do to make the process as smooth and stress-free as possible!

Not Getting Pre-Approval Before Your Search

The first mistake that many first home buyers make is looking for a home loan before they get pre-approval. Getting pre-approval from a lender is an important first step because it will give you an idea of how much money you'll be able to borrow. This can help you narrow down your search to homes that are within your budget. Without pre-approval, you could end up falling in love with a house that's out of your price range.

It's not uncommon for buyers to put down a deposit on a home only to find out later that they can't get financing for the rest of the purchase price. Don't let this happen to you! Get pre-approval before you start your search, and you'll be in a much better position to buy the home of your dreams.

Not Having Enough In Your Savings

Another mistake that first home buyers often make is not having enough in savings. When you're buying a home, there are a lot of upfront costs that you'll need to pay, such as the deposit, stamp duty, and legal fees. If you don't have enough money saved up to cover these costs, you may need to get a loan or finance the purchase with your credit card.

This can end up costing you a lot of money in interest and fees, so it's important to make sure you have enough in savings before you start looking for a home. Aim to have at a bare minimum ten percent of the purchase price saved up, and you'll be in good shape.

Skipping Pest and Building Inspections

Pest and building inspections are important when purchasing an older established property. These inspections are relevant because they can help you identify any problems with the property before you buy it. If there are any major issues, you may be able to negotiate a lower purchase price or get the seller to fix the problems before you buy.

Many first homebuyers skip these inspections because they're eager to finalise the purchase and move into their new home. However, this is a mistake that can end up costing you a lot of money down the road. Don't skip these inspections - they could save you from making a costly mistake.

Lodging Your First Home Owner's Grant Application Incorrectly

If you're eligible for the first home buyer's grant, make sure you lodge your application correctly! The first home owner's grant is a government initiative that provides a financial boost to first home buyers. In order to receive the grant, you'll need to meet certain criteria and lodge your application correctly.

If you don't lodge your application correctly, you could miss out on receiving the grant. This is money that can help you with your purchase, so make sure you do it right!

Not Assessing the Neighbourhood

When you're buying a home, it's important to assess the neighbourhood before you make your purchase. You'll want to make sure that the neighbourhood is safe, has good schools, and is close to amenities.

First homebuyers often skip this step because they're eager to find a home and move in. This could mean you're in a neighbourhood that doesn't have the amenities you need. Perhaps the schools aren't what you're looking for, or it doesn't offer the lifestyle you seek.

The surroundings of your home are often just as important as the home itself.

Buying your first home is an exciting time, but it's also important to be aware of the potential mistakes you could make. By following this guide, you'll be in a much better position to avoid them! Get pre-approval, have enough in savings, don't skip pest and building inspections, make sure you correctly lodge your First Home Owner's Grant Application, and assess the neighbourhood before you buy. Do all of this, and you'll be on your way to a smooth home-buying experience.