Being a first-time home buyer can be daunting, especially since it's one of the most expensive purchases you will make in your lifetime.
But many prospective homeowners are unaware of the different factors that can derail your home purchase, even after pre-approval and an offer have been put down.
To avoid the transaction falling through, you need to be extremely careful until the sale has closed.
Cleaning up your personal finances and avoiding common financial mistakes is a good place to start.
To help you on the road to a successful purchase, property expert at MyJobQuote.co.uk, Thomas Goodman has shared what not to do before buying a house.
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Not checking your credit score
Your credit score is very important during the purchase of a property - it's basically like a CV that lenders use to assess your ability to maintain repayments.
If you have a poor credit score, it can risk your application being rejected which will cause more damage.
Before you apply for a mortgage, check your credit score so you have the chance to amend any errors which could hinder your chances of being successful.
Changing jobs
If you are in the middle of purchasing a property, you should never change your job during the process.
Lenders examine your employment history to ensure you are financially viable and reliable to make loan payments.
If you change your job before securing a loan you can make yourself a weaker candidate to the lender.
This is because you would be viewed as unstable without a steady income.
Buying household goods on credit
Whilst it can be tempting to start buying furniture and appliances for your new living quarters, don’t make the mistake of using credit.
Taking on a new lease of debt can change the state of your credit and may cause a hindrance to your loan approval.
Getting preapproval last
Most sellers do require a preapproval letter with their offer to confirm they are working with a qualified buyer.
As the housing market is competitive, a seller might move on and accept another offer instead of waiting for you to contact a mortgage company.
Always look at houses with a preapproval in place to avoid feeling disheartened.
Not being registered on the electoral roll
The quickest way for a lender to verify your identity is to check the electoral roll, so it’s important to register.
Without this, your application could take longer to process, and your credit score might be impacted.
To register, all you need to do is fill out a short application on GOV.UK.
Using the wrong solicitor
Most mortgage lenders have a panel of solicitors who they can instruct.
If you opt for a solicitor who is not on their panel, you will have to pay extra for one of the approved solicitors.
To keep costs down where possible, always check your lender’s approved list before committing to a solicitor.
Overspending
During the entire purchase period, it will be tight on the financial horizon.
Make a conscious effort to avoid spending more than you’ve budgeted for each month.
The last thing you want is to be in a position not to cover closing costs.
Even though it can be tempting to spend money on small home furnishings and social outings, it’s not as urgent as securing the purchase of your home.
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