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Buying a house is a massive step in your life. You may not have the funds for such a massive investment if you are starting your career. Banks and NBFCs offer home loans at low interest rates to help you purchase your dream home.
You also get tax benefits on the home loan that can be availed jointly with your spouse to reduce the tax outgo. However, you must avoid mistakes first-time homebuyers make if you seek actual value from your property. Let’s have a look at the six mistakes to avoid while buying your dream house.
You have many first time home buyers selecting a property just because it fits their budget. You have many new properties launched regularly in the metro and other cities. Moreover, you have several options to choose from in the resale market.
You may avoid falling prey to real estate brokers and keep your options open to select the right property. It would help if you engage many real estate brokers’ services to decide on the best property purchase.
You may find many first-time homebuyers focused only on ready to move properties. However, you have many under-construction projects that are cheaper than ready to move properties.
You could opt for an under-construction property if you currently reside at a rented accommodation. You may find a vast difference in lifestyle, comfort and capital expenditure if you opt for an under-construction apartment instead of ready to move properties.
You have many first-time homebuyers looking at studio apartments or 1 BHK flats. However, these apartments are suitable for bachelors.
You could opt for a larger apartment if you plan to get married soon. It helps if you budget for future needs and finances when buying your first apartment.
You may consider paying more than the minimum down payment for a home loan. Many banks and lenders expect you to make at least 20% of the property’s total value in a down payment.
You get a home loan with a shorter repayment term if you pay more than the minimum down payment. It helps you to reduce home loan EMIs and save on interest payments over the long run.
You must check your CIBIL score before applying for a home loan. It is one of the main factors that decide home loan approval. You may consider applying for a home loan only if you have an excellent CIBIL score.
It will help if you select banks that charge a lower home loan interest rate. However, pay attention to all the clauses in the home loan agreement when signing on the dotted lines.
You may consider out of pocket expenses when applying for a home loan. For example, banks don’t fund stamp duty and registration charges through the home loan. Moreover, it would help if you focused on maintenance charges and additional expenses such as furnishing costs when buying a home.
You may consider checking the title deed, sale deed, encumbrance certificate and other documents before buying a property. You will have to avail of a lawyer’s services to determine if the property is under litigation or facing other significant issues.
You may need the services of a professional to inspect your house before the purchase. It involves checking the piping, plasterwork, and roofing of the apartment.