Purchasing a home elicits a wide range of emotions. It is a commitment, an inspiration to settle down at a place that you can proudly claim to be yours. However, buying a home is a complex process with several considerations. So, before looking for home loans, it is a good idea to know what mistakes to avoid.
3 Most Common Mistakes Made by Home Buyers
Lack of Research
Since buying a house is probably your biggest investment to date, it necessitates careful planning. One simple mistake committed by most homebuyers is not investing enough time to look for the most suitable property.
Since knowledge is a powerful tool for making decisions, consider reading real estate magazines, online material, and other sources to learn about housing trends in the areas that interest you. Examine the neighbourhood's amenities, such as hospitals, schools, parks, and public transport. Check out the infrastructure of the colonies you like, including construction quality and safety. You can contact real estate agents in the region to obtain insights about the location, costs, and other relevant factors.
Not Shopping for the Right Home Loan
While home loans can be applied for only after you have selected the property, that should not stop you from garnering all the information you can. Check the eligibility criteria and whether you have enough funds for the down-payment required and will be able to meet the EMIs. You can use a home loan calculator to know details like interest rate, down payment, and EMI amount for different investment sizes.
Remember that banks will check your financial credibility before approving the loan. You can take certain steps to improve your credit score before submitting your loan application. This will help a faster approval as well as more attractive home loan interest rates.
Buying an Unaffordable Property
Yes, buying a property is expensive and will put a strain on your finances. If you’ve found your dream home, you may feel tempted to extend your budget. Whatever decision you make should be a calculated one. It is not wrong to increase your budget to accommodate a more suitable property, provided you have taken all the variables into consideration. If you believe you can make the down payment and will be able to afford the EMIs, only then should you extend your budget. Avoid overextending beyond your means.
Remember this is a long-term financial commitment. Moreover, there are other costs to be considered, like stamp duty, brokerage fees, registration fees, fixtures and fittings, woodwork, appliances and so on. You can include these costs when you check a home loan calculator.
Purchasing a home can be exciting. However, do remember that it is a is a big decision that takes a lot of time and effort.
