Buying your first home is always a big decision, and it can be pretty overwhelming yet exciting. It is easy to get affected in the whirlwind of so many emotions and make mistakes that can leave a person with buyer’s remorse later.
In case this is your first time as a homebuyer or if it has been multiple years since you have last purchased a residential property in Zirakpur then knowledge is power. Along with understanding the pitfalls, it is even more important to get some tips from knowledgeable and experienced sources so that you know what to expect and which questions to ask.
In this blog, we will list the top five mistakes that first-time homebuyers should avoid. They are:
1)Affordability: You should know how much you can afford while dealing with a property dealer in Zirakpur so that you do not waste time. This will also save you from looking for houses that you cannot afford or visiting the ones that are much below your optimal price level.
For so many first-time home buyers, the main objective is to purchase a house and get a loan with a comfortable monthly payment that does not keep them up at night. At times, it is a good idea to aim low.
You can avoid this mistake by using an affordability calculator for understanding the price range that is affordable. This will also help in realizing your potential in true terms and will encourage you to plan ahead accordingly.
2)Engaging With One Real-Estate Agent: You will find many professionals who claim to be property dealers in Zirakpur. However, the truth is that they have little to no experience in reality. Make sure that you hire a knowledgeable, reliable, and experienced person who can give you reasonable guidance about property investment.
The best way to do this is by hiring a person who understands that investing in property is a sensitive decision. That way, you will be able to put your money into the best and most suitable option for you. After all, it is your home and you should not leave any stone unturned to ensure that you get the best deal.
3)Savings: Spending most of all your savings on the down payment and closing the costs turns out to be one of the most prominent home buying mistakes. Many times, people exhaust all their money to make the down payment just so that they do not have to pay the insurance. This is like taking a wrong decision because this way people are left with no savings at all.
The homebuyers who put more than twenty percent to pay for mortgage insurance while getting a conventional mortgage usually translates into substantial savings on monthly payments. This is not worth the risk.
Instead, you can aim to have three to six months of living expenses in a fund. Paying the insurance is not perfect, but exhausting your savings for making large payments can definitely be avoided.
4)Home Inspection: The home inspection is like an added expense that all first-time homebuyers do not know about. To some people, this feels like a safe forgoing option. Many people think that they have already seen the property and absolutely nothing seems wrong.
However, the truth is that sometimes a professional inspection results in noticing things that many people can miss out on. Hence, this is one step that is particularly important in case you are purchasing an existing home. Make sure that you tell your real estate agent in Zirakpur to help you in inspecting the home.
In case you end up observing that the home needs big repairs that you cannot see then an inspection can definitely help in negotiating. If you notice some problems in the home that you are considering then adjusting the price on the basis of the same can be possible.
5)Extra Costs: The extra costs might emerge as a big surprise for anyone who is looking to purchase a home for the first time. Just after the keys are all yours, there will be additional expenses on top of monthly mortgage payments such as homeowner insurance, maintenance, and property taxes.
Based on where you are planning to live, you might have to pay some fee to a homeowner association or abroad. In case you open a new account with a lender then your payment will include taxes and insurance on top of your mortgage principal and interest.
There is a chance that you might find that your property taxes increase a little after you close the final price of the home. This can make your monthly payment a bit larger as well. When you are determining how you afford to pay for each month, building some expenses into the budget becomes important.
Buying a new home is one of the most important decisions that anyone makes in their life. This decision becomes all the more important and sensitive when someone is purchasing a home for the first time ever. Hence, it is necessary detailed research is done and all possible efforts are made for buying a suitable home.
The points mentioned above are some common mistakes that can be easily avoided. In case you are a first-time home buyer who is looking to buy a nice home then understand all these mistakes extremely well so that you take the best possible decision.