Buying a home is a big decision and taking a loan to do it is even bigger. When borrowing loans, one needs to assess all the aspects and then take the plunge but still, the people who take loans for the very first time in their lives end up making some avoidable mistakes which end up costing them the loan more than it should. So if you have applied for a home loan for the very first time, then this article is for you because I have attempted to cover many mistakes as possible and you do not end up committing these Homeowner Loans UK mistakes.
1.Know What You Can Afford And What You Cannot
If one lesson most have learned from subprime mortgage mess is that the loan you can afford to take doesn’t have to be the loan branded as affordable by the bank. You need to start from the scratch and that means a budget. The budget should include your living expenses, the student loans if any, credit card bills, vehicle costs rent etc and also the annual expenses such as insurance premiums. Now subtract this amount from your take-home salary and now you can decide whether you can take the loan or not because there is no point in crying over the spilt milk.
2.Overlooking The Mortgage Qualification
If you have a poor source of income or poor credit, you need to get a pre-approved for a loan so that you do not end up wasting not only your precious time but also that of others involved in this transaction such as your agent, seller ’s and seller’s agent’s. But please remember that, even if you manage to get a pre-approved, you might end up losing the loan if anything affects your income.
3.Skipping The Add-on Costs
Do the expenses stop at Taking a Loan? No, there are several other costs you need to consider before you take up the decisions of buying a home such as making some much-needed repairs, paying the property tax and paying for the insurance to protect your home against natural calamities such as earthquakes, avalanches etc. If you are into buying a condo, then you will be required to shell out extra pounds every month because you are part of homeowner’s association which takes care of the maintenance of the condominiums. You need to consider all these aspects before you sign on the dotted lines.
4. Being Too Choosy
Everyone has a dream home with all possible facilities and other desired amenities but is that possible in real life? Only if you are a multi-billionaire! It is illogical to demand that your property should meet each and every expectation of yours. Somewhere you need cut the agent some slack after all nothing is perfect in this world. Also, it depends on when do you plan on to become a homeowner. Do you want to become one now or wait for a couple of years till you can afford everything mentioned in your checklist and then make your move? The choice is yours!
5. Lack Of Vision
If the location and size meet the demand then why go after the physical imperfections? It is better to make the improvisation yourself or hiring a contractor to remodel the house for you because buying an upgraded home will prove more costly than do the upgrades yourself.
Don’t be swept away by the possibilities and keep a sensible head over your shoulders so that you do not end up buying which might cause you regret in future. Good luck with house hunting!
