5 mistakes to avoid when buying a house
These things are a complete no-no when investing in a house
Theoretically speaking, buying a house is one of the most fulfilling experiences on your life, but when it comes down to the practical aspects of it- it is exhausting, to say the least. There is a plethora of advice coming from every direction and it almost makes you giddy because it is a big decision and you wouldn’t want to make a mistake. Very understandable.
At Emaar India, we know that behind that moment of signing the sales deed, there have been years of hard work done to save money and millions of dreams invested by you and your family members. Hence, here are a few mistakes we suggest you avoid in the process-
Paying token before the home loan is approved
Yes, you might have checked your credit score and loan eligibility and you might be sure that your loan will go through without a glitch; but we suggest you wait till the paperwork is through. If you haven’t got a nod from the bank yet, it’s not a good idea to agree to book the flat/house. This goes for both the token amount and the brokerage.
Keeping the down payment conservative
Many of the home buyers rely on the fact that once the home loan goes through, you don’t have anything to worry about. Which is partly true, but you must always remember that along with the loan, comes the interest. And the interest paid is basically like paying a fee to the bank, hence, the more we minimize it, the better. So, when you are saving for the dream house, do factor in how much of that interest do you wish to pay. If you can increase the down payment and thus reduce the loan, better for you.
Rushing through the inspection
It is possible that the house you are considering has been recommended by someone known who happens to know the locality/building. Does that mean you take their word and do not inspect the house well? No! Please make sure every tap and every switch get inspected. Even with regard to the paperwork, it always helps to get a legal point of view.
Buying a second-hand property
Are you considering buying a second-hand house under the impression that it will be cheaper for you? Well, we have got some news for you. The thing about 2nd hand homes is that you can never know the entire history behind a house that has been lived in. For example, you won’t know if the walls have a water seepage issue or if the termites feast on the wardrobes every now and then. For all you know, you might spend more maintaining it than you did buying it. Moreover, even the home loan assessment process might get prolonged because assessing the value of the house becomes an issue.
Buying more than you can afford
Has it happened to you that you have set eyes on a property and fallen in love with it? Well, we suggest checking the price tag before you commit. We tend to think it is a one-time purchase and hence splurging is alright, but sadly you’d see the repercussions of this once the EMI burns a hole in your pockets. We are sure you have created an excel sheet of the cost-benefit analysis and it is always a good idea to just stick to that and not give in to the temptations.