Purchasing your dream home is the most memorable day of your life. To make this feeling last a lifetime, it is significant that you pay full awareness to home-buying nitty-gritty and take informed decision.
I have listed some of the common mistakes you should avoid before starting the house-buying process.
Not checking your credit report
Before you think about buying a home, do check your credit worthiness. It is essential to scrutinize your credit report and see if you are eligible to get a home loan. In addition, after checking your credit score, get the rough calculations done on how much money your lender will lend you. After you decide your budget, hunt for a property accordingly.
Not paying attention to hidden costs
Your credit worthiness may get you the required home loan amount, but do not ignore the fact that real estate purchase does not just mean the price of the property. Your house-buying process includes various hidden costs such different types of charges, taxes, and even the renovation and home décor of your new address. These prices 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 easily afford it. Think about the long-term expenses. As years pass by, your family would grow and so your expenses would also increase. Consider your total future expenses and if you will be able to pay your EMI for that long. Moreover, do not buy a house because you feel an emotional connect with it. Think about other aspects that affect the value of your house. These can influence the resale value of your home too.
Trusting your real-estate agent and lender blindly
A general mistake home-buyers often make is to trust the real-estate agent blindly. Your agent must be familiar with all the market trends, right property and prices, but do not trust him completely. Be a smart buyer and do your own research & find no brokerage homes, go for different online portals which provides unbiased & hassle free services & no brokerage homes and then take the final call. Likewise, do not have a blind faith on your money lender. Significantly, check all the policies of the lender and ask as many questions as you can. Your lender may hide things like processing fee or any other hidden costs.
Not getting everything on paper
After negotiating with the seller, both the parties may settle at a specific price. To your dismay, you may find out that the seller has backed out as he has got a better deal. Therefore, it is always better to secure agreements and consent in writing before you start the house-buying process. Not only with the seller, but you should get the paperwork done with everyone involved in your home-buying process, including the real-estate agent and the lender.