05 July, 2023
4 mins read
Even though buying a house is a dream goal for many, the home-buying process can be tedious and confusing, especially for a first-time home buyer. Given the fluctuating property trends in the market, tracking the ideal house for a first-time home buyer requires proper research, professional support, and comparison of different parameters like houses, locations, home loan interest rates, and more. However, when first-time home buyers know the most commonly-made mistakes by home buyers, they can avoid making the same mistakes and make the home-buying process easier for themselves.
Here are the top mistakes first-time home buyers should avoid before buying a house.
One of the biggest mistakes first-time home buyers can make is focusing too much on the interiors or the home size they want and not considering the locality surrounding it. The location makes the most of one’s living experience. Home buyers should look out for a location with immediate or close access to reputed schools, colleges, hospitals, medical stores, restaurants, sports clubs, gymnasiums, parks, and recreational centres, among other infrastructure/ amenities that make life convenient. First-time buyers should not forget to check their travel distance from the highways, expressways, airports, commercial work zones, and other hotspots, especially if they have to travel for work.
Often, first-time home buyers might only look at the price quoted by the realtor or agent. However, home buyers should always ask for a complete breakup of the total cost of the house. Many hidden and additional costs go before buying a house. These include the maintenance fees charged by the society, a homeowner’s association fee if the society is registered with any association, and other fees. Buyers will also have to pay for legalities like a property registration fee, stamp duty charges, GST if the flat is under construction, and other fees. Other costs payable will include costs for third-party services like brokerage fees, home inspector fees, home loan processing fees, and others.
Buying a house for the first time requires various legal procedures and approvals. If buyers miss them in the home-buying process, it can cost them later. Apart from paying legal and tax costs like registration fees, stamp duty charges, and lawyer fees, home buyers must ask for these legal documents. These include the following:
Often, home buyers, especially first-time home buyers, might not have the deposit money to pay for buying the house at once. Many home buyers take the help of a home loan for buying a house for the first time. Before applying for a home loan buyers often forget to check their home loan eligibility criteria and risk getting rejected by the banks lending them money. Buyers should check their home loan eligibility criteria to improve any missing factors. The eligibility criteria are to assess a buyer’s repayment capacity. It depends on factors like the buyer’s age, monthly/ annual salary, and credit/ CIBIL score among others. Banks might also ask for documents like identity proof and income tax receipts to determine the buyer’s repayment criteria. Buyers should also check and compare loan interest rates and tenures from different banks and builders before finalising a home loan application.
One of the biggest mistakes home buyers should avoid while buying a house is not getting home insurance and home loan insurance. Home loan insurance is not necessary if you are paying the deposit amount, but it is essential if you are applying for a home loan. Home insurance protects the buyer against financial losses incurred due to damage/ loss of the home’s exteriors and interiors, while home loan insurance covers the loan amount borrowed. Both loan types prevent the burden of repair or repayment from falling on the shoulders of the buyer’s dependents in their passing or any other eventuality.
Looking out for these mistakes while buying a house can help save time, effort, and unnecessary money. Furthermore, also ensure that you look for reputed developers. Residential properties like Piramal Aranya offer beautifully designed, contemporary residences that make them a suitable choice for first-time home buyers!
Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.
05 June, 2023