The house you are going to buy has many attachments of yours – emotional, financial. If everything turns out to be fine and perfect then you it turns out to be a safe haven for you, else you land in to utter disappointment and agony. That’s is why home buying should never be done in a hurry or under any influence. Do a certain set of ground work before you finally chalk out about the property you are going to purchase. Here are a few mistakes for the buyers that they must avoid when buying property.
Not having a clear budget
Many buyers usually overestimate their capabilities and underestimate their limitations. Never go by the words of the bank to be the right budget for you. Always plan your budget according to what you can actually afford. Create a clear budget considering every aspect of your fixed monthly and yearly expenses, which can be spending on education, health, domestic expenses, vehicle use, loan payments if any, credit card payments, insurance and savings etc. if you still think, you have enough surplus money to invest on a new house, then go for it.
Choosing a wrong location for affordable price
Choosing a wrong location for the sake of affordable price is one of the biggest mistakes that home buyers commit. Do not miss to inspect the locality while purchasing a home for you. Check the place has enough to meet all your criteria concerning your safety and security, easy commuting, your neighborhood, availability of goods and services, and ever the environmental condition around that place. These are things that can severely affect you and your loved once in the long run.
Not considering the fixed and variable expenses
This is again a kind of mistake we commit when we look upon our weaknesses concerning the matter. Apart from a fixed monthly installment that should be paid, there are lot of other variable or recurring expenses usually associated with any property. Think well if you are well prepared to take care of them. If the builder or the seller demands extra money for certain maintenance, assure that the property actually needs such an expense. Then add it to your final price and reconsider the overall budget you have planned earlier. In addition, there are some obvious costs, such as insurance of the property or the property owner, property taxes, closing cost, homeowner’s association fee, parking fee etc., which need serious attention.
Not thoroughly understanding the terms of agreement
A number of buyers usually do not read the terms of agreement carefully or even if they read it, they actually do not understand it. Read the purchase agreement thoroughly. If you are not confident of making out the terms and conditions, do not hesitate to take help of an advocate, who can in turn help you read out them and make you understand them.
Paying token amount before the loan is sanctioned
It must be understood well that the right time to pay the token amount is not when you finalize the deal with the builder or the seller. It comes when you win an uphill task of getting the loan sanctioned from your lender or the bank. Many a people regret paying the token amount before the loan is approved.
Not taking legal assistance
Buying a house involves huge amount of money and effort. Seeking legal help does not come only after any fraud or misappropriation of the property occur. You must take legal assistance before you buy property. It will help in getting certain clearances, such as environmental clearance and commencement certificate etc. it can proactively avoid involving in a property which can later go into litigation against any error or fraud committed by the seller.