Common Homebuying Mistakes You Should Avoid
Posted: Jan 02, 2020
Making mistakes is human nature. However, when it comes to buying your home, making small mistakes can hit you hard. Below are a few pointers that you as a buyer should remember when buying a home.
Keeping your options limited: Buying a home is an exciting process that surely gives a sense of accomplishment. Under such conditions, a buyer can make some impulsive decisions that will do more harm than good. In order to avoid such a scenario, it is always advisable that you keep your options open and meet multiple dealers to survey properties in your preferred locations. Given the condition and the kind of inventory offered by the Indian real estate market, you can rest assured that there is always an option that suits your budget and other preferences.
Choosing ready to move in property: Buyers often get attracted to ready to move in properties as it is easily available and you can escape the hassle of the waiting period for the under-construction properties. However, many under-construction properties offer better options in terms of locations, living space, amenities and of course price. If you have seriously decided on buying a property then doing some research could land you on some near possession properties. You may be paying rent and EMI, but the advantages of owning a new property rather than a ready to move in far outweigh the cons.
Not getting a pre-qualified home loan: It is important to have your home loan pre-qualified before buying your first home. The real estate market is a tough place that demands buyers with a high paying capacity. A pre-qualified home loan also helps you to plan out and know your potential to repay the loan.
Not considering family growth: When you plan to buy a home it is important to consider your current and future family size in mind. You may get married or have kids in the future, hence it is important to consider such factors as it asks for more living space. Remember that you may also have to bear additional costs that will impact your repayment capacity.
Planning & Sticking to the budget: Your finance will play the most crucial role in your home buying journey, hence it is important that you pre-plan your budget and try to stick to it at all cost. This reason is that your EMIs will not be the only expense but also registration charges, brokerage fees, maintenance charges, and other finances will be added to it. So it is important to plan your budget accordingly. Remember, failing to plan is planning to fail.
Paying Small Home Down Payment: Every working person will agree to the fact that arranging home down payment finance is one of the toughest hurdles to overcome. However, the lower the down payment the higher the home loan and the rate of interest will be. It may seem to be a good idea to invest in your home at an early stage of your career, but you would certainly be stuck with a big home loan tenure with even bigger interest burden. So to tackle it, you should start saving for your home down payment as early as you can.
Overspending on Accessories: When you move to your new home it is so much tempting to buy new furniture, appliances, fittings for modernizing your home. However, remember not to overspend on such things which will hamper your finances. Using some old or second-hand furniture is still a good idea without breaking your bank.
Avoiding a home inspection: Many times buyers make a mistake of not getting their home properly checked by home inspection professionals. Your new house may look perfect but there may be some hidden deficiencies that you cannot recognize. Hence, you need a pair of trained eyes that can see through such defects. If any such flaws are found that might need repairs, then you must immediately report this to the developer. It can also help you get some discounts on the total price.