Buying a home involves a lot of preparation and planning. You must not only find the best house that suits your needs, but also you must plan your finances well. Often, first-time buyers tend to commit mistakes, which spoils their home buying experience. Read on to know more about these mistakes and how to avoid them.
If you are buying a home for the first time, it surely would be a momentous occasion. It is a significant step that would change your life in many ways. But, amid the excitement of being a home-owner, there are crucial steps and processes that you must follow. For you, and as more most people in India, the first step to buying a home is applying for a home loan. As a first-time homebuyer, the processes may seem to be too overwhelming to comply with, but if you know what each step involves, you can avoid the mistakes that can ruin the home buying experience later. Here a few common mistakes that people commit and tips to avoid them.
Applying for a loan without being sufficiently prepared
Ideally, buying a house must not begin with choosing the best lender for a home loan, but with evaluating your finances and knowing your credit score. The lenders consider the CIBIL score as one of the critical parameters to decide the eligibility amount. If your loan gets rejected for a low credit score, it will further affect your score and future loan applications. It is, therefore, paramount that you check your score before approaching the lender. Once you confirm your eligibility, you can proceed with the loan process.
Not Comparing
When looking for the best properties, it is easy for you to fall in love with the first home that you see. But, you mustn’t make any quick decisions and check at least 8-10 houses and compare them to arrive at an informed decision. Make sure to evaluate the pros and cons of every property that you see and keep a record of the evaluation. This will help you know exactly the features you want in your home and the things that you can afford to compromise.
Deciding based on affordability
When comparing properties, you may find a home that perfectly fits within your budget, and you think it is affordable for you. But, you must avoid making the purchase decision based on the affordability factor alone. You must assess if there any additional expenses you may have to incur in the long-term? What are the amenities and facilities you are getting with the house? Does the home have good resale value? What is the scope of development in the locality? Knowing the answers to all these questions will help you make a thought-out decision and enjoy your home to the fullest.
Not getting a thorough inspection
It may seem obvious to do a thorough inspection of the home before buying it. But, a lot of first-time homebuyers do not realise its importance. Once you have zeroed down on the property that you want to buy, you must get all the related papers and get it assessed and verified from an expert. Also, make sure that you go through the documents thoroughly and try to understand every point mentioned in it.
The inspection of the house must not be limited to the papers. You must also do a physical inspection of the home. You must look at the ceiling, flooring, plaster works, roofing and plumbing work to ensure that everything is in perfect condition.
Buying a home can be exciting and stressful at the same time, irrespective of whether you are a first-time buyer an experienced one. You may have to face unexpected situations like delay in the loan process, discovering the hidden costs, etc. But, the more you know about the processes, the easier it is to avoid amateur mistakes.
