Buying a house is not as straightforward as some people would have you believe, and for many buyers, problems can and do arise. If you are a first-time buyer, there is even more of a risk of issues arising, as you have never purchased property before, and therefore, do not know what to expect. If you are new to the world of real estate, here are some problems that could arise.
- Taking Out The Wrong Type Of Mortgage – Many first-time buyers make this mistake, and if they receive poor advice from their mortgage broker, they could easily pay a lot more than they should. The best thing to do is search for an independent mortgage broker, as he is not tied to a single lender, which allows him to search for the mortgage that best suits your needs.
- Hiring An Incompetent Conveyancing Solicitor – The conveyancing solicitor is responsible for carrying out a series of searches on the property, which should ensure that there are no outstanding debts on the property, nor restrictions. If you search online for a well-established and local conveyancing firm, you should be OK. There are articles available online about things that can go wrong when purchasing real estate, which every potential buyer should read.
- Failure To Secure A Home Loan – You should never take it for granted that you will automatically be approved when applying for a home loan, and prior to looking at any properties, you should seek mortgage pre-approval, which means that based on the information provided, you would be eligible for the loan. No seller will take you seriously if you don’t have mortgage preapproval.
- Failing To Calculate The Full Cost Of The Property Purchase – There are many costs involved when buying real estate, such as stamp duty, and by checking the handy stamp duty calculator you will be fully aware of your tax liabilities.
- Buying A Damaged Property – It does happen where the buyer is so smitten with a property that they fail to have certain surveys carried out, and without this, the property might be infested with pests, or worse, have structural defects that they are not aware of at the time of the purchase.
- Someone Backs Out – This often happens, as most people are involved in a property chain, and should the seller suddenly find out they cannot move into their chosen property, they might refuse to sell, which leaves you in the lurch, so to speak. Property chains can be long, and the actions of one person could have serious knock on effects that mean you are unable to proceed. A person will not likely sell if the house they planned to buy suddenly becomes unavailable, and the chain can be very long, which can affect many people.
The above are just a few of the scenarios that could occur when buying real estate, which is why you need expert legal advice from your conveyancing solicitor. By understanding all of the above, you are hopefully in a position to avoid these common issues, and the purchase can go ahead without any issues.
