Buying a property for the first time is one of the scariest things you may ever do in your lifetime. You’re investing hundreds of thousands of dollars into an asset, and you’re likely quite unsure how the entire process will play out.
You’re not alone. Every day, thousands of people leaping onto the property ladder are experiencing the same fears and concerns. The most common of which are listed below:
Not Having Expert Help
Choosing the house of your dreams makes up a small part of the property purchasing process. The rest consists of paperwork, legal processes, and jargon that may not be easy to understand. If you don’t have a property investment advisor on your side, you may soon find yourself overwhelmed.
Other experts can also be worth calling on for help, such as real estate agents, brokers, and lawyers. With their assistance, the purchasing process is more likely to go off without a hitch.
Not Knowing What You Can Afford
You may know you want to become a homeowner, but how do you know what you can afford? The money in your bank account may not reflect your actual borrowing potential. Property experts can assist with this process too.
They can look at your income, deposit, and credit score to determine your loan approval chances and the mortgage you can afford. There are also plenty of mortgage calculators that can help you determine the weekly or monthly payments you’ll be looking at depending on the size of the mortgage you’re considering and the length of the term.
Worrying About Your Credit Score
Your credit score may not be something you believe matters all that much in day-to-day life. However, when the time comes to apply for a loan, a mortgage, or even car insurance, it can suddenly become the most important thing in the world.
Your credit score may impact the interest rates of your loan and even your chances of securing a loan through a mainstream funding source, such as a bank. Fortunately, there are plenty of experts out there who can offer advice on how to increase your credit score to put you in a desirable home purchasing position.
Not Understanding What to Look for in a House
Once you’ve got preapproval and you’re officially on your house-hunting journey, you may struggle to know where to begin. You may not even know what a “good” house looks like and what will suit your needs the best.
Firstly, focus on the area in which you want to buy. You can then narrow down your options based on your preapproval limit. Also, consider how many bedrooms you need, whether or not you require garaging and fencing, and if more than one bathroom is necessary.
Once you’ve found a property that meets your criteria, you can tick the last remaining boxes with inspections to ensure there are no concerns that will cause stress.
Paying too Much
The property market is competitive, and it’s easy to bid with your heart and not your head. Before getting caught up in a bidding war that sees you paying more than the house is worth – or more than you can afford – talk to the professionals. Ask your real estate agent for advice, and compare other sales in the area.
As a first-time buyer, it’s only natural to be nervous about the property purchasing process. However, with the right experts to guide you, you can rest assured that they are there to answer any questions you have before you put up that ‘sold’ sticker