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9 Rookie Mistakes That Hurt Home Buyers

9 Rookie Mistakes That Hurt Home Buyers

9 Rookie Mistakes That Hurt Home Buyers
(Dreamstime)

When planning to buy your first dream home, you come across times and situations that may baffle you. Being the first-timer, buying a house can turn into a nightmare, if the steps involved in the purchasing process are not followed to the hilt. Getting apprehensive about new house is fairly natural, but rookies tend to overlook the fine print and the nitty-gritty of the home-buying process.  

Proper financial foresight and planning don't make for a cautious home buyer, it's important to be fully aware of the common mistakes which beginners tend to make.

Following are some tips for the greenhorn home buyers:

Long-term budget

You should have a healthy corpus which will help you to ascertain how much money you can afford and from where you will arrange the funds. The earlier you start saving, the more money you would be able to save for your dream home. Save, research and invest to get the best house deal.

Check your credit report properly

Once you zero-in on a property, make sure you get a copy of your credit report and see if you are eligible for a home loan. Cleaner credit report translates into higher credit score, which means there are better chances of you getting a pre-approved loan.

Know the hidden costs

After preparing for long-term budget, be ready for many 'extras' which can dent your financial planning. Things such as utility bills, property tax, moving cost, home repairs, lawn care, electrical wiring and other maintenance charges can pop-up anytime. All these things may look small but they will surely eat into your budget at the later stage.

Get a second or third opinion

Once an individual finalises a property, wisdom suggests to take advice from a learned friend or a relative. They may give a new perspective to your decision. We tend to overlook faults when we have made up our mind on a certain property. Bringing a third opinion is sensible as it will help you take an informed decision.

Know what you can change and what you can't

When you invest your life's savings in a property, it is important to get a clear idea of what you are getting for that price. Every location or society has some kind of restrictions. The usage of roof, extension of balcony, window or any room is limited in some housing societies. So, before you sign on the dotted line, get a holistic view of the situation.  

Finding the home on your own

Certainly, it is not possible you alone go out in the real estate market and find a house for yourself without the assistance of any property dealer. Just think how much money and time you could have saved if you had any dealer to assist you. A dealer has all the details of projects and properties plus he can give comparative market analysis to determine the pricing.

Double-check developer's background

For the greenhorn, the big mistake he makes is when he doesn't cross-check the credentials of the developer. One wrong decision can wreak havoc with your savings of the lifetime.

Some rules to follow

Some housing societies and complexes have limitations that come with certain conditions. The aim is to ensure that the property holds its value. Do get the copies of restrictions in advance while inspecting the property. Read them carefully, and then arrive at a decision. Having pets or running a small business from home are restricted in some housing complexes.

Don't rush

The dream house should not become the biggest of your life. Patience holds the key to all your decisions. Each and every step needs to deal with tactfully. There are lot of factors to consider when buying a house, so don't rush and fix everything smoothly.

Last Updated: Thu Mar 02 2017

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