Buying a house involves a good amount of money.So, unless you’re looking at buying flats in Kanakapura Road from professional realtors who assist in the end-to-end process;here are a few major pitfalls which you should strictly avoid at any cost during the process.
1. Avoid Buying a New Home if You Have Plans to Move/Relocate
Most of us opt to buy a home and become a homeowner even when we know that we have plans to move or relocate to another place. However, according to experts, if a potential home buyer is not sure about his plans to stay at the present location for 2+ years, it may not be the right decision to buy a home. This is because – with property taxes, closing costs and possibility associated with the drop in real estate price, home buyers, who relocate in less time after making a purchase may suffer a loss.
2. Never Exceed Your Set Budget to Buy a Home
Despite the fact that almost every potential home buyer sets a budget before searching for homes, they often disregard it whenever they see any beautiful flat or home and thereby, go out of their price ranges. However, home buyers should always remember that the set budget is according to their own financial and logical constraints. Thus, you should strictly keep your emotions aside from your budget and financial equation.
While budgets may stretch to an extent to meet the exact amount of dollars, most of the homeowners fail to consider scenarios where a possibledecline intheir income may take place or the real estate sector may witness a crisis. If these types of situations take place, getting your budget reworked to purchase a dream home may lead to a big mistake.
3. Never Overlook Hidden and Added Costs
Buying a house is not an easy task as you decide to trade a rent payment for any mortgage payment. Instead, it involves different types of costs/expenses, which include homeowners insurance, closing costs, property taxes and fees related to the association of homeowners. Furthermore, most of the home buyers usually overlook the maintenance costs associated with their purchased properties.
With the inclusion of mentioned hidden and added costs, sometimes, it is possible that any house within budget very soon goes out of the budget. Hence, you should make sure to keep in mind the additional costs mentioned here while you search for your home and come up with a good purchase decision. For this, you should inquire about the approximate maintenance costs, property tax amount and insurance cost while finding a good home. You should make sure to include such costs to your monthly mortgage to know the potential actual cost of your home ownership.
4. Avoid Skimp the Down Payment
Next individuals looking to buy a home should strictly avoid skimping on the down payment. This is because – less value of the down payment would mean a higher mortgage payment on a monthly basis leading to strain to your finances.
5. Never Forget to Inspect a New Home
Lastly, you should never forget to inspect your potential new home by taking help from a professional inspector. Improper insulation, leaky pipes, fault chimneys and eroding foundation are few problems, which a potential home buyer often fails to identify at the first glance. In this situation, as a potential home buyer, you should approach a professional inspector to inspect the home, as he knows the things to focus on whenever a property is available in the market for sale and even inspects the hard-to-spot damages caused due to water and termite infestations.