Investing in property is the biggest investment in anyone’s life and this involves many risks. The article sheds light on some of the common mistakes, which a buyer commits while buying a new property. Read on the following article to learn more about such 5 common mistakes, and bear in mind for future transactions!
Buying your home is indeed a daunting process, and also includes a number of processing, documentation and information retrieval to achieve your goal. Depending on how strong and well geared are your first steps in the search for your first home, the better could be the result!
Here are some of the basic mistakes, which you must avoid as a first home buyer:
Going out to see houses without being pre qualified
When you decide to buy a home, the first thing to investigate is that how much you spend on our property. A pre qualification bank will determine your ability to make payment and see if you have enough credit to buy.
That loan pre qualification will give you a valuable guide to start looking for a house with the specifications of your interest, but within the prices that you can afford to save the valuable time.
Search homes without knowing what you want
It may be that the bank tells you that you qualify for a $ 170,000 home, for example. Nevertheless, you should not go with such facts and remain confident of the type of home you want to invest in. Take the advice from your family and then finalize things! Ask yourself if you want a detached house, an apartment or a “townhome”.
Analyze the location, number of rooms and the lifestyle you really want to have. Whether you prefer the city or the countryside, if you want a gated community with controlled access, or an open society! There are people who wish to invest in two levels homes. Take time to think, as this will be of a great help to make your search easier.
See homes priced much higher than what you can afford
For sure, you have heard that the market is mainly driven by the buyers and have excess properties for sale. However, the market is always open and there are options for negotiations. It is always to look for homes, which lie in your budget without compromising over other expenses.
Blindly rely on a professional real estate bank or without consulting doubts.
The relationship with your real estate agent or banker should be trusted, and that is fine. That does not mean that you consult your doubts, you do not ask questions or to sign all documents they give you to sign without understanding.
It is important that it is the first time you work with these professionals, and do not know their references (which is highly recommended). It is important to seek all types of information about them and the institutions they represent.
Buy house of a friend or family member without clearing terms of the purchase
Transfers of properties with loans, were in fashion extensively several decades ago, but are unusual in this era. Banking regulations have changed and in many places, such types of transactions are extremely prohibited. You can buy a home of a relative or friend with an outstanding mortgage, but most of the time you will qualify for the loan like any other property.
Buy homes, which are clear of all types of obligations to make a hassle free deal and transaction. Make the process easier for yourself. It is always recommend that you consult a lawyer or real estate expert to play safe.