Buying a home is a very difficult and daunting task especially if it is for the first time. Perhaps the reason is, it involves the largest financial transaction. Isn’t it? Buying a home is something you should do very carefully. A lot can go wrong when you are buying a home. Generally, new home buyers commit a lot of mistakes. Sometimes these mistakes can ruin your dream of owning a perfect home.
To help you save from the situation, here I am going to mention 7 worst home buying blunders you must stay away from.
- Improper research: This is one of the most common mistakes a new home buyer commits. It is very important to understand the family’s needs and finance before making a plan to buy a new home. Without knowing how much money you can afford, hunting for a home is simply a waste of time. You should also consult your bank regarding the loan amount. You should also consult your financial advisor. Once you get the complete idea of your estimated budget, you can look for your dream job.
- Looking for a home that goes beyond your budget: Looking for a new home makes you a little giddy. And this may lead in stretching your finance and end up in over budget. Surely, this is not a game you want to play. The first rule of buying a home is, ‘be in your budget’. Crossing budget leads to financial crisis. Always look for a home which is in under your budget.
- Not getting the home inspected: It doesn’t matter what your friends and relatives say about the home or how nice it looks, always get the house inspected before you make the final purchase. When I was looking for a 2 bhk apartment in Jaipur, I hired a team of professionals to get my apartment inspected before buying it. The step is very crucial. You must know the quality of materials involved while building the home, must ensure all the electric fittings are working properly etc. After all, investing in a home is one of the biggest investments.
- Not knowing about first-time home buyers programs: As I stated, buying a home involves a lot of money and probably you don’t have much money for down payment or closing costs. If you are a new home buyer, there are a lot of programs that offer down payment assistance and low mortgage rates. Keep yourself updated with such programs and offers.
- Skipping the mortgage qualification: Knowing how much money bank will lend you is very important. Have a good knowledge of your available credit is very crucial. Many people start looking for a home without enquiring the loan amount. If you will avoid this step, you will be wasting your time talking with the mediators. Additionally, you can calculate Mortgage yourself too. Therefore, be in touch with your bank and know how much money you will get as a mortgage loan. Know your mortgage qualification.
- Not inspecting the locality: Many people commit this blunder. Before buying a home, ensure that the location is well connected, has a good drainage system, schools, electricity, good availability of water etc. Therefore, have an eye on the mentioned factors before buying a home.
- Not seeking proper guidance: It is one of the worst-case scenarios. Not going with proper guidance leads to headaches and frustration. Many home buyers tend to avoid the importance of consulting and seeking proper advice and guidelines from real estate agents, brokers and lenders. To be safe while buying a home, it is highly advisable to consult an agent. You can browse world wide web or go through the yellow pages or take help from friends. There are many ways to find and connect with a professional real estate agent. It is not a bad idea to try them all, says Karen from Advantage Properties, because a professional real estate agent goes a long way. Remember, this is one of your biggest investments in life! Ask as much you can because as long as you ask, you will be confident and informed to make the right decisions.
The involvement of huge capital makes the home buying one of the most crucial decision. Therefore, there should be no space for mistakes when it comes to buying a home. It is very important for a home buyer to stay away from the blunders mentioned above at all costs.
Please let me know what are some other blunders people commit while hunting for a new home in the comment section.