The savvy home buyer knows that preparation is everything. The more you know about the process, the less mistakes you’ll make. Here are some common mistakes home buyers make (and how to avoid them).
While it’s not compulsory, getting pre-approval is very useful. Not only does it give you a realistic idea of what you can borrow, it means you can put in an offer with confidence. It’s best to shop around to find out what banks are willing to lend you.
It’s the silent ones that can sting. Just remember there are usually upfront and ongoing extra costs you need to weave into your budget. These include:
Structuring your loan to your financial circumstances makes sense, but it’s important to think about your future needs too – not just your current ones – particularly if you might want to turn your property into an investment.
By keeping some of the cards close to your chest, you can have more negotiating power. Remember that real estate agents aren’t only looking to get the best price for the seller, they’re also looking for a sale for themselves – so there’s often wiggle room to negotiate.
Either way, here are some things to keep to yourself:
Of course, agents aren’t your enemies. They want to make sure they’re selling the home to the right person, and ultimately, they’re there to help you too. Try and work with them as much as you can.
We can’t deny how exciting buying a house is. We also know how quickly emotions can creep in and compromise rational decision-making – for example, saying to yourself: “what’s $10,000 in the scheme of things?”.
Make sure your expectations are set from the start, you’re clear on the non-negotiables and you don’t go over your approved budget. Remember, there will always be another dream house out there for you.
Whether you’re interested in our range of home loans, getting pre-approval, or just after more tips on how to avoid these common mistakes, our lending specialists are happy to take you through the finer details.
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