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Tips for First Time Home Buyers to Get Their Dream Home

Tips for First Time Home Buyers

If you are considering buying a home or property for the first time, you probably need a checklist. A checklist will provide you with all the things that you need to take into account before making this important investment.

Jumping into such a huge investment can be quite scary at times. There’s a good possibility that you are super perplexed after looking at the options. Any real estate property serves two purposes— investing and self-use. But once you’re sorted out the motive of why you want to buy the house, the outcome becomes easy.

5 Tips to consider before buying a house for the first time

Evaluate your financial profile

Evaluate your financial health and see if the equated monthly installment (EMI) of a home loan is affordable for you. Check your savings and find out if you have enough funds to make a down payment. Do not apply for a home loan unless you have an ample amount for unannounced emergencies. Rejection of loans may affect your credit score.

Check for Bank Approval

Make sure the property is approved by a reputed bank. Since banks check everything before approving a loan request, these projects always have the assurance of being financially and legally compliant.

Research and cash in on an affordable housing scheme

Try looking for housing schemes provided by the government to help people buy the most significant asset of their life. Housing Choice Voucher Program (Section 8) in the States and Pradhan Mantri Awas Yojana in India are some instances of such schemes.

Explore the amenities provided and social infrastructure

Once you’ve chosen the type of property, you should consider the kind of lifestyle you wish to maintain; here’s where the specifications and amenities offered by the property come into the picture. Also, check for the connectivity with the city and social infrastructure. Make sure to buy a property that is well-connected to the city and where you can find the best hospitals/ health centers and education nearby.

Review Maintenance Cost

Another aspect to think about, especially if the project features a range of amenities and features, is inquiring about the annual maintenance costs beforehand. This may help you gauge the total cost of living in a particular project.

Verify the property authenticity

Ensure the property is registered under RERA (Real Estate Regulatory Authority) and check the RERA number online by visiting the official website if you’re in India. For people buying property outside India, verify the house details via the local land registration body or authority.

3 common mistakes to avoid when buying a home 

Failing to keep a record of the credits: Credit issues include debt collection issues, considerable credit debt, late payments, et al. . To ensure that you have no credit issues, get your credit report half-yearly. This will help you keep a track of your administrative mistakes and credit issues if any. Get to know your credit score and report for free with the mymoneykarma website.

Seeking loans before you’ve got been pre-approved: Sellers won’t even consider purchasing your property if you don’t have a pre-approval letter. The letter is vital as it shows that you have enough finances to pay the bills based on your credit report and history, employment history, income, financial assets, and other variables.

Not considering hiring an agent: Often people think they don’t need a real estate agent, look for and buy a home on their own. A property agent will not just help you to find a property, but also in negotiating the price with the seller. The best thing is he will share the commission with the seller’s agent from the fees given by the seller and you will save a good amount!

Buying a home for the first time can be quite a challenging task. The following pointers will help you a lot when hunting down a suitable property. Investing in a property is a big step and it ought to be taken with utmost care and precautions so that you don’t regret your decision in the future.

Katha

Katha works as a Content Analyst with mymoneykarma, a leading fintech firm in India. She has an experience in B2B and B2C businesses providing digital marketing content that gains social media attention and increases their search engine visibility. She is also a freelance writer who offers editing, blogging, and other content-related services.

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