Buying your first home is an exciting venture, especially if it signifies another milestone in your life such as graduating from college or starting a family. However, a home purchase is not always a smooth transaction, whether it’s your first or your third, and problems can occur at any stage.
However prepared you are to buy a home, whether or not you complete on the sale comes down to other links in the property chain, over which you have limited control. Here are five things that could go wrong when buying your first home, and the steps you can take to minimize the risks.
You Can’t Get a Mortgage
Obtaining a mortgage is the first step to take when buying your first home, but it’s not as easy as you might think. Your ability to get a mortgage depends on a number of factors, including your credit score, income, employment situation and general affordability. Check your credit report before making an application and consult a mortgage advisor to discuss your options.
There are mortgage options for people with poor credit, but you still run the risk of being rejected if the bank thinks you could default on your payments. Remember that mortgage offers tend to be valid for a specific period, and if your home sale doesn’t complete in that time, you will have to apply again.
You Choose the Wrong Seller
You can never be sure that a home purchase will go smoothly, and there is always a risk that the seller could pull out before completion. An established real estate agent will vet sellers more thoroughly, so the chance of something going wrong on their end is minimized.
There Could Be Hidden Costs
Buying a home is an expensive business. Not only will you need to pay a deposit to obtain a mortgage, but you’ll also need to spend money on a conveyancing solicitor to assist you in the buying process. Make sure these fees are transparent and competitive to avoid hidden costs. Spend some time researching the professionals in your area and avoid going with the cheapest option. As with all things in life, you get what you pay for, and you don’t want to find you’re let down by someone in the chain.
Legal Details Could Be Missed
When you’re buying your own home, it’s important to get the legal details right, so you will need to hire a solicitor who will ensure your interests are protected. Rather than paying a lawyer on top of your other expenses, you may want to think about hiring an accredited online conveyancing Solicitor to deal with contracts and perform the necessary checks and searches.
The Chain Could Collapse
Unless you’re buying a new build, there will be a chain involved in your home purchase. Unfortunately, if someone changes his or her mind or legal details get missed, the chain could collapse. A chain collapse could happen right up until you complete on your home. So, to minimize the risk, stay in constant communication with the other parties. That way, if a problem arises, the people in the chain can try to address it in good time.