House hunting-Five Common Mistakes When Purchasing a Home
Buying a home for most people is the single biggest financial transaction, and it is attached to dreams, excitement and hope. When investing a hefty sum, it is vital that one has to be very cautious and take a wise decision after a comprehensive discussion. It should not happen that you find that the newness of the home has worn off with the installments or payments still pending. Hence, it’s always necessary that you buy smart and buy right. Home buying is a detailed process that requires an eye for detail so that nothing goes wrong and the process goes smoothly. It requires a little awareness that will make sure that one can buy a home of their dreams without any hurdles or hitches.
To make sure that every home buyer has a smooth ride to their dream house, they need to be aware of the common mistakes that are generally made by first time home buyers.
Avoiding professional guidance: It is important to employ an agent or realtor for first time home buyer, as they can provide a complete market analysis, which will help you select the best house for the given budget and can also provide expert advice on what to look for, negotiation strategy, etc. A good agent will make sure that the home buyers interests are protected throughout the home-buying process by helping out with the documents and statements verification, providing information on home loans (like banks, interest rate), helping at the time of inspection and also when registering.
Buying an unaffordable house or House hunting: Buying a home and retaining it are two different tasks. Generally, the home buyers give importance to the location of the house – the neighborhood, schools and proximity to various places. However, it is also important to look at the financial burden it will have on one’s pocket. Paying the monthly installments can have a huge impact on financial life so the budget has to be fixed after looking at the other prospects. Owning a house will have monthly recurring costs such as utilities, repairs, maintenance apart from the monthly installments; hence one has to work out the finances to have a long and healthy relationship with home-ownership.
Abandon the idea of home inspection: Forgoing the inspection of the house may be a good idea to save on money, but the consequences may be not that great. It may happen that the home one has bought could have major issues which will be known only when one moves in – like newly developed foundation issues or mold issues, which are not visible from outside. To avoid these issues, one can hire a professional inspector to identify such deficiencies; and, if deficiency occurs, the purchaser could negotiate the purchase price to cover the required repairs.
Pre-approved loan: One can buy a home only when he has the proper finances to support it, this can be done by going through the application process of mortgage and have the finances ready before looking out for a good place. Obtaining a pre-approved loan will give a better understanding on one’s own financial situation and will give you a clear picture on how much your financial institute can lend. The best way to do this is to contact a few banks and a couple of mortgage brokers before deciding on one. Knowing the loan amount and the interest rate beforehand always helps in taking the right decision and make one feel confident about making the offer and going ahead with the deal.
Avoiding the market trends: Regular monitoring of the real estate market will help in getting the right home for the right price. One can even ask the agent or realtor to pay attention to information like, popular real estate builders, their quickly moving properties, how many days they generally stay on the market, the price trends, what kind of offers they are providing, etc. Then, based on the information, strategic decisions about home buying process can be taken. One can even look at the internet for price trends. The important thing is being informed and taking the best decision.
These home buying mistakes can be avoided by giving a little thought to the common mistakes and working around it. It will always be helpful to get expert advice before jumping to such decisions.
Manika Krishnan writes on behalf of property.sulekha.com, a property portal which caters to all the consumers’ needs in the real estate sector. It is a platform where buyers, sellers can exchange information in a quick and effective way. Sulekha property invites you to advertise a property, search for a property anywhere in India.