Buying a home is the dream of every homemaker. Buying a home for the first time is particularly special. In ways too numerous to count, it changes one’s life. For the first-timers, it may be a bit overwhelming. But by considering each step carefully and avoiding common mistakes, the process could be a gratifying experience.
Before embarking on your journey, be sure to check out these five essential things to look out for or avoid when in the market for a new home:
When Applying for a Home Loan
One of the first steps you need to take before buying a home is to consider your credit score. Keeping that in consideration comes before filling out loan forms and even before looking at houses. Your home loan approval depends on your CIBIL score because it decides your eligibility. If your home loan is rejected, it will put a negative mark on your history and affect further applications. Take your time to go through your financial history and check your CIBIL score before even looking at home loans to prevent many headaches in the future.
If your loan is confirmed, the next step is to make a comprehensive list of all home expenses. Most new buyers make the mistake of keeping only the price of the house in mind and taking out a loan solely based on that figure. What typically goes unaccounted for is furniture, decorations, expected repairs, taxes, brokerage, and registration. Preparing a sheet listing and adding up all these expenses will ensure a more accurate loan sum.
Compare and Contrast
It’s very easy to fall in love with the first spacious house you see, but it’s important to keep your budget in mind. Firstly, considering all features of the house from an objective perspective will help you make a grounded decision.
Write the pros and cons of every house you visit and record your evaluation. This method will provide a comprehensive picture of the exact house, out of all options, that is best for you. It’s even better if you compile a list of features you do and don’t want in a house and compare that to the pros and cons list for every home.
Ask about maintenance charges, parking slots, additional charges (if any), and amenities. Talk to neighbors about the regularity of water supply, light, safety, and security in the area.
Evaluating the Minimum Down Payment
Consider the option of paying beyond the minimum percentage that’s required. When you invest a heftier down payment, you will get a short term loan with less interest, making it more affordable every month.
It does also depend on your savings. By putting down a more substantial down payment, are you going to wipe out your savings? Doing so could mean having to struggle through the next few years, even with a lower mortgage to pay off.
Before you hunt for your house with a plan for a more significant down payment, keep in mind there is a chance of rising house prices, meaning you may end up paying more all around.
Relying on Affordability
Before entering a house, don’t forget to ask yourself some critical questions about what makes this house special. There’s more than just affordability or emotional connection that goes into this.
What would be the expense in the future? What’s all included with the house? What would be the future resale value? What else is being developed in this area? If you have all the answers to these questions that will help you make a balanced and well-thought-out decision, you can enjoy your home with much more peace of mind.
Getting a Thorough Inspection
Once you have decided to buy, ask for all papers related to the home, and thoroughly review them with a real estate lawyer. You may not understand all the terminology, so having a real estate lawyer by your side comes in handy.
Never forget to ask questions. Is the land currently under dispute? What can you do if the builder has issues and tries to back out of the project? Know all the legalities you’ll have to deal with if you find any loopholes in the paperwork. This precaution may help brace for something that could be an issue in the future.
A thorough inspection is not just about the paperwork but also about the house itself. Like sealing, piping, plasterwork, roofing, and all the light wiring should be in perfect condition. Try to build your knowledge as well as confide in a trusted professional to inspect your house from roof to floor.
Hopefully, this helps provide a clear understanding of what to look out for in the house-buying game. If you want to know more about buying and selling a home, don’t hesitate to reach out to us here at Spears & Co!