If you are a first-time home buyer, it is natural to have butterflies in your stomach. The feeling of excitement of owning a home of your own coupled with many apprehensions can be tough to deal with. A lot of people often get bogged down by this feeling and tend to commit a few errors. Let’s look at these common rookie mistakes and how you can avoid them.

Overlook the importance of credit score

One of the most common first-time home buyer mistakes is that people don’t understand the importance of checking their credit score before applying for a home loan. Lenders often reject the loan application because of the low credit score. So, if you are planning to apply for a loan, make sure that you check your score and try to get your score up to avoid your application being rejected.

Not being meticulous with budget

A lot of people, in their excitement to buy a new house, tend to apply for a higher loan amount only to find them-selves struggling to repay later. To avoid this, make sure that you meticulously plan your finances well in advance. Carefully review your savings and future income and decide how much money you can spare for the down payment. Prepare a budget; you may feel the pinch once the EMIs start. Make sure you have enough funds to not compensate on the usual lifestyle as well as to meet any emergency needs.

Not doing a property inspection

This is one of the most important first home buyer tips that you must remember. Once you choose the property you wish to buy, it is paramount that you get it thoroughly reviewed or inspected by a real estate expert for damages. Also, you must get the property-related documents checked and ensure that it has a clear title.

Taking decisions in a rush

This is another common mistake first-time home buyers commit. It is understandable that you are keen to buy a home, but never take any buying decision in a hurry. You may feel enticed to quickly close the deal with an attractive looking property. But, ask yourself is it worth the money you are paying. Do a thorough check of the seller/builder’s credibility, find out about the materials used for construction, amenities available, etc. You will spend a considerable amount of time in the house. So, make sure that everything is just right before you sign any paper.

Remember, the above tips for buying first home and you can be sure you have a peaceful and enjoyable experience living in the house.

Learn more about Mutual Funds for a good personal financial management.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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