Financial Planning and Analysis

What Things A Buyer Should Avoid In Case Of Buying A House 

4 days ago

As a buyer, whenever you think of getting a new home, you should learn certain things & kept essential points in your mind. There are many mistakes that you, as a buyer, can commit in a hurry to buy a new house.

The first time home buyer mistakes to avoid at the time of entering into the market and make sure not to commit any such mistakes that their parents, siblings, and friends made when they bought their first homes.

Mistakes committed by a new buyer -

First time home buyer mistakes to avoid& you should understand specific facts & figures:

Not figuring out how much house you can afford: Sometimes, it creates confusion & you don't know how much home you can afford, which results in wasting time. You might end up looking at those houses which you can't even think to afford.

Getting just one rate quote:
It is an excellent practice to ask for multiple quotations in case of taking mortgage loan to get a lower rate of interest. Mortgage interest rates vary from lender to lender, and so do the fees charged by them. Taking only one quote for a rate can never be a good idea.

Not checking credit reports and correcting errors: whenever you apply for Mortgage, lenders will scrutinize your credit reports and your CIBIL score to approve your loan and at what interest rate. If your credit report contains errors& does not have a good score, you might get quoted an interest rate that's higher than you deserve or even can reject your request.

Making a downpayment that's too small:You don't have to make a 20% down payment to buy a home. Some loan programs help you to buy a home with zero down payment or within a range of 3-5% down payment. But choosing low down payment & getting pressure at the time of making EMI or installment payment can create regrets.

Emptying your savings:
It is always a good idea to save your money for a better future, but If you buy a previously owned home or an old house, which requires certain repair expenses.

Applying for credit before the sale is final: It happened one day in your life when you apply for a mortgage. It is very crucial to think about the lease once the deal is final. Nobody wants to pay interest without owning anything.

Conclusion –

You probably don’t have a ton of money to buy a new house, but savings can somehow make the deal possible. As a first time home buyer, mistakes to avoid, you should understand specific facts as mentioned above & analyze them properly to get a better deal.

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