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Common Mistakes To Avoid Before Buying A House

Common Mistakes To Avoid Before Buying A House

Common Mistakes To Avoid Before Buying A House
Never go for a property just because you can afford it. Think about the long-term expense. (Dreamstime)

Buying a dream home is the most memorable day of one's life. To make this feeling last a lifetime, it's important you pay full attention to home-buying nitty-gritty and take informed decision.

MakaanIQ lists some of the rookie mistakes you should avoid before starting the home-buying process.

Not checking your credit report

Before you think about buying a house, check your credit worthiness. It is important to scrutinise your credit report and see if you are eligible to get a home loan. Also, after checking your credit score, get the rough calculations done on how much money your lender will lend you. After your budget has been decided, hunt for a property accordingly.

Not paying attention to hidden costs

Your credit worthiness my get you the required home loan amount, but do not ignore the fact that real estate purchase does not merely mean the property price. Your home-buying process includes many hidden costs such different types of fees, taxes, and even renovation and home décor of your new address. These costs may look reasonable, but they can actually make a big hole in your pocket and upset your budget.

Not planning ahead

Never go for a property just because you can afford it. Think about the long-term expense. As years pass by, your family would grow and so would your expenses. Consider your overall future expenses and if you will be able to pay your equated monthly instalment (EMI) for that long. Also, do not buy a home because you feel an emotional connect with it. Think about factors that affect the value of your home. These can affect the resale value of your home too.

Trusting your real-estate agent and lender blindly

A common mistake home-buyers often make is to trust the real-estate agent blindly. Your agent must be acquainted well with the market trends, right property and prices, but do not rely on him completely. Be a smart buyer and do your own research, talk to several agents and professionals and then take the final call. Similarly, do not have a blind faith on your money lender. Crucially, check all the lender's policies and ask as many questions as you can. Your lender may hide things like charges for processing fee or any other hidden costs.

Not getting everything on paper

After negotiating with the seller, both parties may settle at a given price. To your dismay, you find out that the seller has backed out as he has got a better deal. Hence, it is always better to secure agreements and consent in writing before you start the process. Not only the seller, but get the paperwork done with everyone involved in your home-buying process, including the real-estate agent and the lender.  

 

Last Updated: Sat Jul 30 2016

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