The Mistakes Every First Time Homeowner Makes

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Soaring house prices have meant that 39% of millennials have battled for as long as ten years to save up for their down payment. Therefore, when you finally have the savings, find the house of your dreams and complete on your purchase, the last thing you want is to make a big mistake that you’ll regret. So, before you consider ripping out your kitchen cupboards or start planning your first home’s interior design, here’s how to avoid making the same mistakes as every other first time homeowner.

Investing all your savings

It is widely speculated that first time homeowners require a 20% down payment. However, a study from the National Association of Realtors, shows that first time buyers typically put down 6% on their first home. While, putting a larger deposit down will lower your mortgage payments, it’s important to keep some cash aside to cover closing and moving costs, insurance, repair and renovation work and essential household goods, such as a fridge-freezer. Therefore, when you’re reviewing home loan products, be sure to shop around for the most appropriate mortgage for you and your circumstances. There are hundreds of mortgage products on the market and interest rates vary greatly in the market, so never go with the first one you come across.

Decorating after you’ve moved in

Finally getting the keys to your new home is an exciting time and there’s no doubt that you won’t be able to wait until you move in. But, before you go packing up all your belongings and ordering new pieces of furniture, think about how much more difficult it will make decorating. You’ll have to work around large pieces of furniture, cover everything over with dust sheets and take extra care and precaution with every flick of the paintbrush. Instead, turn your first property into your ultimate dream home by decorating it before you move in. Whether you’re tackling the job yourself or calling in the professionals, it will be quicker, easier and safer to complete the work while your property is vacant and bereft of furniture.

Signing with the first contractor

When you’re calling upon the services of a local contractor to renovate the bathroom or to lay new flooring, it’s essential you get quotes from multiple contractors before agreeing a deal. 30% of individuals told Angie’s List that they typically got less than three bids for their latest home renovation project. Yet, experts state that three bids is the ideal number of bids you should obtain for any work in your home. Different contractors will come up variable bids and one or two of them may be higher than you were anticipating. However, when it comes to choosing the candidate who will transform your first home, look at online reviews, speak to others who have used the contractor and trust your instincts.

Buying your first home is an exciting time and it’s only natural to make spur-of-the-moment decisions. However, such decisions can lead to regret. Therefore, learn from others who have walked in your shoes and avoid ploughing all your savings into your new investment. Additionally, renovate and decorate before you move in for best results and shop around for contractors before settling on your final one.