Owning a home is a priceless experience for all. But the journey isn’t easy. A lot goes into home buying. From searching top localities in Lucknow to finding kid-friendly amenities, it involves all types of research work. Since many people buy a home for the very first time, mistakes are bound to happen. So to prevent such mistakes, we have created this guide for you.
By following this guide, you can get aware of the common mistakes and avoid committing them. Let’s check them out one-by-one.
Common mistakes to avoid for homebuyers
1. Ignoring the credit score before home loan approval
Since a home loan is the first option for all homebuyers, the one mistake they often make is ignoring their credit score. If you are one of them and overlook your credit score, then you’re making a great mistake! It affects your home loan term while significantly increasing the interest rates. At times, a bad credit score leads to home loan denial.
So what to do? Always check your credit report before applying for a home loan. This will give you a clear picture of whether you’re eligible for a pre-approval or you’ll end up paying higher interest rates.
2. Not sticking to the budget
Exceeding your budget can cause financial distress. Set a budget for your ongoing expenditures, such as EMI, property tax, insurance, maintenance, and others. Stick to this budget, and don’t go overboard. Consider how much money you have for the down payment and how much you need to borrow. Based on this analysis, decide your budget and stick to it.
3. Skipping preliminary home inspection
Home inspection is one of the requisites that homebuyers need to consider. With the essential inspection, you can find out potential risks or issues in the property. Based on these damages or issues, you can bargain with the real estate agent, broker, or company.
Skip this step and you’ll be surprised by unexpected expenses amounting due to sudden repairs.
4. Making low down payment
Often, people want to keep their down payment low, which is actually a grave mistake. If you don’t know how to buy a property in Lucknow at the lowest cost, increase the down payment. This will reduce the monthly EMI and interest rates. You can also consider the real estate payment plan to manage your down payment.
5. Not maintaining an emergency saving
Owning a home means inviting many unexpected expenses. Most of the homeowners exhaust all their savings during the down payment. That leaves them with no emergency funds to cover sudden expenses. So, it’s important to maintain an emergency reserve for unforeseen expenses.
6. Making an impulsive decision
Buying a home is undoubtedly one of the biggest moments of life. But making impulsive decisions without considering other aspects may cost you dearly. So, keep the emotions aside and take a practical approach to considering whether the property you’ve finalized meets your financial goals.
7. Considering only one option
First-time homebuyers usually go with the first home they encounter. This mistake may lead to missed options and better pricing. Do not commit this mistake and stick to just one bank and Real Estate Company. It’s always better to shop around, explore other projects, and compare shortlisted properties to make a final call.
8. Taking too much time to decide
Just like early decision, taking too long to decide is also a big mistake first-time home buyers make. Do not take long
9. Not exploring the neighbourhood
Everyone wants a home that’s based on their requirements. But only looking at a residential apartment or property’s aesthetics and not the neighbourhood is a mistake. Check out the neighbourhood, nearby hospitals, educational institutes, markets, and other facilities before making a final call.
10. Not saving for stamp duty and other charges
As said earlier, buying a home involves many other expenses. One of them is stamp duty. Registering a property in India attracts government charges known as stamp duty. Calculate how much stamp duty you’ll pay during the registration and then make a final call to avoid a last-minute rush for the funds.
Conclusion
So, these are the mistakes people often make while buying a house. Consider them and analyze your situation to avoid any unpleasant experience.
