Home Buyers Tips for 2010

If you are thinking of buying a property in 2010 then you need to make sure you avoid the following 5 common mistakes.

1/ Getting too many mortgage quotes

As a general rule shopping around is a good idea but with mortgages it can sometimes be a bad idea to get too many quotes. When you apply for a mortgage quote banks will generally run a credit check on you. Each time a credit check is carried out it leaves a footprint on your credit report. If you apply to several banks then there will be several notes to this effect on your report. This can sometimes go against you when you eventually find the right property. A good Mortgage Broker, like MortgageLine, will find you the best deal and then only apply to that lender for you. This looks much better on your credit report.

2/ Going direct to your bank for a mortgage

Going direct to your bank for a mortgage is a bad idea. One thing that is a given after the last two years is that Irish Banks cannot be trusted. Check out the following Irish Independant article, "Pop into your local bank for bad advice"

By going direct to your bank you are limiting your options. A good Independent Broker like MortgageLine will make sure you get the best deal, not only on your new mortgage, but also on the extras that you will need like Life Assurance for example.

3/ Fixing your mortgage for too long

Rates are at historic lows at the moment and so 2, 3 & 5 Year fixed rates are attractive and well worth considering. However it is not a good idea to fix for too long. Some banks for example will offer you fixed rates for 10 and in some cases 20 years. Fixing for too long is not a good idea because you just cannot be sure how your circumstances will change over that period. Fixing for just 2 or 3 years gives you some security but also the flexibility that you will not have to wait too long if you want to move house or remortgage.

4/ Believing your Estate Agent

In the current market bids below the asking price are normal. In this scenario the Estate Agent will probably come up with some spiel like the following,

"..I should warn you that there is another couple looking at the property tonight and they are very keen and will probably offer the asking price. If you can raise your offer now I can guarantee the property is yours.."

The Estate Agent is most likely preying on your fears of losing the property. Stick to your original offer and tell the Agent to come back to you if anything changes. The Agent will do everything possible to get you to raise your offer so buyer beware!

5/ Not budgeting for the hidden costs

Unfortunately as well as paying for the property itself there are a number of other costs that you will need to budget for. These include solicitors fees, surveyors fees and valuation fees. Ask your MortgageLine Adviser about the costs you need to budget for.

Finaly its hard to say what 2010 will bring. Our economy has took one hell of a pounding over the last few years but I think we can be allot more optimistic going into this new year than we were last year.

If you need good honest Independent Financial Advice in 2010 give us a call or Apply Online