Planning on buying your first home? Avoid these 3 mistakes

BUYING A home is one of the biggest financial commitments most people will make. It is therefore vital to be aware of the potholes you need to avoid, says Gerhard Kotzé, the managing director of the RealNet estate agency group.

Three mistakes you should not make:

1. Rushing into a purchase Buyers should always avoid buying in a rush, especially in a town or area they do not know well.

Kotzé say research is essential, so even if one does not have young children, for example, they should check the quality of the schools, as well as the medical facilities, the crime rate, shopping areas, and entertainment facilities – anything that could affect the resale potential of their home.

2. Opting to not get pre-qualified for a home loan Not taking the time to pre-qualify for a home loan before looking at properties for sale is a mistake.

“You really need to go through this process with a reputable mortgage originator so you are very clear about what you can afford, and don’t waste any time looking at homes that are out of your price range. In addition, being pre-qualified for a loan will give the home seller confidence that you will be able to finance your purchase.”

3. Putting all your money into the purchase Kotzé says buyers must avoid putting all their cash or savings into their home purchase.

“While lenders are obviously more likely to approve a loan with a 10% or 20% deposit, it is prudent for buyers to keep some cash in reserve for unexpected moving expenses and emergencies, as well as the legal, bond and transfer costs which, in most cases, have to be paid in cash.

“Rather try to obtain the maximum home loan you are comfortably able to afford, leaving some leeway for possible future interest rate increases.

“And if you do have any spare cash left after the move, you can always pay it straight into your home loan account to immediately reduce the principal amount and increase your home equity.”

WHEN BUYING a home, avoid these mistakes. PICTURE: ALENA DARMEL/PEXELS