Financial Mistakes to Avoid as First Time Home Buyers
When you are buying an apartment for the first time, you might be wary of many things since home buying can be a complex process and with the lack of experience, you might be prone to making blunders that can cost you financially. Since buying an apartment is a huge financial ordeal, make sure you are aware of financial pitfalls to avoid ending up with buyer’s remorse.
Depending heavily on bank loans
Although most home loans offered by banks provide up to 70% of property value, there are other factors such as your income and financial solvency that determine how much loan amount you will be qualified for. Also even if in your current position you are able to avail the home loan, make sure to not rely too much on your home loan, since no one can predict life at all times. To avoid getting overwhelmed by loan incurred on your first home in case something goes wrong financially in your life, recheck whether you can pay back the loan amount even with a setback.
Choosing the wrong loan type
Different banks offer home loans that vary in interest rates, tenure, settlement options and so on. Before deciding from which bank to avail your home loan, consult different banks and financial experts, or previous home loan borrowers to ensure that you select the right home loan which meets your financial requirements.
Not having a budget
Since buying an apartment is a costly endeavor, you definitely should plan ahead and formulate a budget. Most first time home buyers do not take into account hidden expenses like maintenance and repair costs apart from their monthly installment payments. Remember to keep these costs in mind too when apartment hunting. With a planned budget, you can enjoy your homeownership without being financially pressurized later on.
Getting the wrong apartment
Sometimes even after giving in your best efforts, you might find yourself in the wrong home. This can be attributed to any reason, from buying an apartment without inspecting it, to choosing to buy from the wrong real estate developer. Everything in your newly bought apartment might not be as peachy as it looks and flaws might start to show in which case you will need to repeatedly fix your apartment. So make sure you educate yourself to save up your future apartment repairing costs.
Settling for the wrong location
There is a reason why every real estate expert will harp on the importance of location because it actually is! Apart from being stuck in a location you do not want to live in for the rest of your life, a poor location will also hurt its reselling in case you want to upgrade or relocate to another apartment. With some little planning and research you can easily dodge this costly mistake.
As a first time home buyer, you might be a bit overwhelmed since buying a home is such an impactful decision. While a few minor mistakes are excusable, make sure you do not make any major financial blunders that will cost you in the long run and handle the home buying process in a smart way by being a well educated apartment buyer.