Buying a New Home? Here’s What You Need to Know

Family posing in front of a signage

Buying a new home is always a complex process, whether it is your first time or not. Read on to avoid the most common mistakes that many buyers make.

Mistake #1: Not getting an agent

Many house and land for sale in Melbourne, Victoria abound so choosing just one house can be difficult. With an agent, you can get listings of houses available and pick one you might be interested in without wasting time looking at hundreds of listings yourself.

What you need to do: Good agents will always ask what you are looking for in a home. Most often than not, they also know of new listings that are not yet on the market, preview ideal homes for you, and even give you advice accordingly when the listings you want are overpriced.

Mistake #2: Not doing a physical inspection

That is, you should check the house you want to buy. Do not make an offer to buy a house without having a home inspection first. You do not want to buy a house with a faulty foundation, right? A home inspection would ensure that.

What you need to do: You can hire an accredited home inspector to do it for you. Doing so might cost you a little at the onset, but the information that you can get from a home inspection can save you thousands of money in repairs and might even get you a bargaining tool to lower the asking price of the property.

Mistake #3: Not factoring in other costs than the mortgage payments

Man holding a mortgage contract and penMortgage payments are not the only thing you need to deal with when buying a house. You also need to consider other expenses or ‘sleeper costs’ like property taxes and other dues like utilities and homeowner fees.

What you need to do: Make sure that you also set aside a budget for sleeper costs including payment for possible repairs or maintenance. Budget your finances for all of these so that you will not be surprised once they come in.

Mistake #4: Not checking your credit reports

Your credit report is one of the things your mortgage lender will look at before they decide to approve your loan application and determine the interest rate to give you. Therefore, any error in your credit report can negatively affect your whole application.

What you need to do: Make sure request a copy of your credit report from the credit bureaus. Then, check for possible errors. If there is any, have it corrected as soon as possible.

Mistake #5: Not thinking about your future needs

Many homebuyers fail to consider their future needs and plans when buying a property. For example, some excitedly buy a bachelor pad, only to sell it a few years later when they decide to start a family.

What you need to do: Try to think about your long-term plans. Do you see yourself having kids in the next few years? Or being the primary caregiver of your ageing parents? Consider all of these things when choosing the type of home to buy and the neighbourhood you want to live in.

There are many more aspects to know when buying a house. Ideal new homes are not always easy to find. But with enough research and a good agent to back you up, your home buying process would be so much easier to do.