Shopping a home is one of the biggest emotional and financial decisions we make in our life. Though we are very excited throughout the buying process but it also gives some sort of stress if we don’t research thoroughly or make some common mistakes. You can avoid this mistake and make this journey very happy. Look at the common mistakes that we do in the process.
1. Ignoring the Cost of HomeOwnership
Being a tenant, you are habitual to pay monthly rent and some other stuff like telephone and cable bills. Now you are probably unaware about additional monthly costs that are being paid by your landlord. To become the proud home owner, you will have to pay stamp duty, loan application fee, property tax, home insurance, water & sewerage bill etc. don’t forget about maintenance cost. You are advised to set aside 2 percent of the total cost of the home annually to cover repairs and maintenance.
2. Not Hiring an Agent
Although every piece of information related to home is available online today but it’s a mistake to enter the process without having a professional realtor. Real estate agents are very well aware about the location, circle rate and are expert in negotiation skills. An agent will work on behalf of you and make the buying process smooth.
3. Applying for Loan at the Last Minute
Many people commit mistake when they start their home search before checking their mortgage eligibility. Buying a home is an emotional process, so don’t hurt yourself by selecting something that you cannot buy. Check your loan eligibility and then decide how much you can afford monthly. Going this way, you will be saving your time as well as agent & seller’s time. Go for pre-qualification of mortgage as it will help you select property in your price range. Be realistic about your budget and save time and energy throughout the process.
4. Talking to one Bank
Most of us go for single bank that was referred by real estate agent or friend and not worried about talking to multiple lenders. Different banks and NBFC offer different interest rate. So if you go with single lender then there is a chance that you will not get best interest rate. You are requested to shop around available bankers and choose the best.
5. Going Beyond Budget
It’s human nature to fall in love with what is magnificent and beyond our capacity. Don’t be tempted by look and features as bank has limited your purchase limit based on your loan repayment capacity.
6. Ignoring Down Payment Assistance Programs
Down payment is the biggest hurdle to first-time home buyers. But you will be happy to know that there is an option called down payment assistance program that helps you in this regard. You can reach out to them for zero interest rate financial support for your down payment. Enquire with your real estate agent for more detail about down payment assistance program in your area.