Real Estate Investor Magazine South Africa August 2015 | Page 80

Just Residential

Financial mistakes to avoid during the

Home Buying Process
Helpful hints for first time buyers

I

t is highly advisable for a first time home buyer, taking on
a new mortgage, to adjust and get used to the monthly
payments as early as possible. A careful evaluation of
your budget, along with a personal spending plan that
factors in any future costs can help you to avoid some
of the more common financial mistakes.
One of the most common financial mistakes that
first time home owners make is in the taking out of
a mortgage on their first ‘dream home’. Oftentimes,
inexperienced buyers can bite off more than they can
chew, resulting in them becoming buried in a heavily
unplayable mortgage.This occurs when first time buyers
remain ignorant of extraneous costs associated with a
home purchase (such as general maintenance, repairs
etc). Sitting with the wrong mortgage plan, which does
not accurately fit their needs, can result in a large cash
drain for the buyer as well. Careful consideration should
be taken at every step of the way when reviewing
finances for a mortgage so that the correct decisions
can be made.

10

Issue 8 2015

First time home buyers may not be aware of the
processes involved in applying for and receiving approval
for a loan. This can often be a complex and complicated
procedure, as there are a number of different verifications
you may be subjected to (such as credit history,
employment, and criminal records). A buyer unfamiliar
with these check ́