From a very young age, many people dream about owning a house for their families and themselves also. There is no place like home in the world, as everyday stress is relieved at home only, there is no feeling like home, especially one’s own house. It is one of the crucial decisions in your lifetime. And while making such a prudent decision, always take advice from the senior members of the families and should be well aware of every aspect of the home purchase. Dreaming is easy but aiming is difficult. To make your dreams work you must have an aim in mind. The aim of having a house is one such thing. It takes many years of planning, and savings so that we don’t have to overextend our budget and focus on other expenses also. It takes a lot of research work to purchase a house from a trusted builder. Keeping all this in mind, here are some common mistakes first-time home buyers should avoid:
● Overextending your budget- Before taking home at rent or owning your own house one must keep in mind to set a budget before making any decision. If you like a home way above your budget or loan eligibility. You may feel that a little stretch in your budget might not affect you. But in the long run, we forget to keep in mind the daily changes in inflation will affect our day-to-day expenses like rising school fees, medical expenses, and interest rates. This creates financial stress that you are not able to handle.
● Not purchasing from a trusted builder- when purchasing with an unknown builder they may save you some money but you end up compromising in quality, at that stage your mind keeps telling you to save some money without taking into consideration the long-term investment will always give you more significant profits and there value will not depreciate in a long run, as well as not being assured of the building being legally approved. You might also start getting delays for the legal work. Whereas if you buy a house from a reputable builder you can rest assured of all the legal profession in terms of proper approval of the documents etc.
● Loan eligibility- If you are planning to take a home loan there is a certain eligibility criterion. Eligibility criteria could either be different for different clients or it may depend on the requirements of the person availing the loan. Individual banks offer different interest rates on loan one must be aware of the same.
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● Basic requirements for availing home loan from a Bank – one should make use of the home loan eligibility calculator in which various factors such as your age, income, loan tenure, existing loan obligations, and pending EMIs are taken into consideration and your eligibility can be calculated. This reduces the risk of your loan rejection and you can buy your dream house without any hurdles.
● Talking to only one lender: Sticking to one lender can be a big mistake and you end up paying more money. The more you research about the lenders and keep comparing prices you will start getting better deals with the lowest rates possible and there are high chances of reducing losses. Try to talk around different lenders, and mortgage dealers and start comparing rates, lender fees, and loan terms.
● Overlooking the hidden cost- Most people overlook that there are certain hidden costs or expenses taken into consideration while taking a home loan such as registration fees, taxes, transportation costs, maintenance charges, insurance, etc. These are unavoidable expenses that should be taken into account.
● Moving too fast- since it’s likely the largest investment you will make in your lifetime. So, you make sure it benefits you for the long term, first time home buyers should avoid rushing into and take into consideration the payment of interest.
Other than Finance one must consider the following things as well:
● Family’s acceptance -If you are planning to live with your family then their acceptance is also important, before buying a house one must keep in mind the comfort of the family members as well in terms of the number of rooms, ambiance, etc, as it is a place where you are going to create memories with your loved ones.
● Selecting the right town- if you are an independent woman then your safety must be the priority therefore you should look for a society that is safe for you to travel freely at any time. The goal must be to select a society where you and your family feel accepted, and where their culture and values match yours.
Before buying a house one must always consider the aftermath of buying a house, we should always keep in mind how this will affect their other expenses and whether it is worth going into long term debt.