What Mistakes First-Time Home Buyers Should Avoid?
As the first-time buyers are prone making mistakes while buying a property and are unaware of what they should do, to avoid future complications.
For almost everyone, the purchase of a home is often the biggest investment of their lives that involves financial and emotional investment. Stuck between the ecstasy of buying a property and the stress of its financial implication, a first-time buyer often becomes vulnerable to making errors that might create consequences. In this blog, we list some common mistakes that first-time buyers are prone to making and how to avoid it while investing in property.
Believing That You Can Get A Home Loan Easily
Buyers usually get mistaken as they believe that one can apply for any loan amount and the bank would approve the application and disburse the credit within days. This in turn is not at all true. Approval of loan totally depends on your personal eligibility. After that they will assess the property you intend to buy and decide the loan amount that they would be willing to lend for that property. But, still it will be not more than 90% of its overall worth of the property for sale.
Over-borrowing to buy an unaffordable property
It is true that excitement level goes high when you are planning to buy a property, but many times first-time home buyers often make the mistake of opting for homes that exceeds their monetary capacity.
And, then they borrow excessively from the market, making just not home a liability but be financially stressful as well. Thus, it is one of the biggest mistakes that first-time buyers often make by over-borrowing to buy an out of the budget property.
Not Counting In The Miscellaneous Expenses
The common mistake is that the buyer does not count the miscellaneous and in the end gets into trouble. A lot of additional expenses like stamp duty and registration charge is needed for registering the property for sale in your name. So, to be on a safer side having a prior estimate of these extra expenses would be helpful.
Trying To Do Everything On Your Own
Home buying is never easy and is a lengthy process that involves legal and financial aspects. Therefore, it is always advised to hire a real estate consultant to ease the process of buying a residential property. As it will save the cost, time and will provide you shortlisted options of projects as per your need.
Unaware About Tax Benefits
The first time buyers might not be aware of the tax benefits as not many people are well-versed about the taxes. There are many benefits and rebates when you buy a home, and hence they could be taken benefit at the right time.
Choosing The Wrong Home
Choosing the right home is not that easy as it seems to be, a lot of research is required. A property should be hunted on the basis of budget, needs, future requirements and amenities. As the first time home buyers are not much exposed to the market, they may not choose the right home and in the end regret their decision.
Therefore, you these above mentioned points will help you to avoid mistakes while making your dream come true. Happy Investing!!!
Read Also: Tips And Ways To Rain-Proof Your Home And Prevent Damage
