1. Settling for the wrong mortgage
To be in the best buying position you need to ensure that your loan has been prequalified before looking for a house. You also need to find out how you can afford the house. You can use the many mortgage calculators in the net to see the amount of money that you can borrow . Remember, what the bank can actually lend you and what they have indicated is different. Instead of going to one bank, use an independent broker who can access a variety of finance products and lenders. In short, you need to choose your finance package well.
If you are a first time buyer,buying a home can be a daunting and challenging task. There are many misconceptions that buyers may come across while buying a home. Since it’s oneof the biggest investments that you will ever make, it’s important to make thebest decision. Besides browsing through the property portal while looking for properties in bukit jelutong,you might want to consider these 7 biggest mistakes and misconceptions that about buying a home.
2. Letting your emotions to overtake you
Do not allow yourself to get attached to the house so much that you lose your sense of thinking. While it’s difficult not to get emotional, you need to remember that this is a future investment. If you let your emotions overtake you, you can end up spending more than you can afford. Whether you want a backyard or multiple bathrooms you need to prepare a list of the most important things that you need. However much you have, you will not find a house that meets all your need. It’s, therefore, very important to narrow down to the most important things first.
3. Being lured by the market
Instead of being influenced by the market you need to consider your own needs. Normally property market keeps on fluctuating hence sometimes it suits the sellers. Unless you want to gamble with your own future, you should not wait for the prices to come down. Just take a look at the many houses for sale in PropertyGuru and you will find the price trend is not going anywhere. Remember, different messages from the mediamight tempt you to put off your buying decisions. If you understand your budget, organize your finances and then think about your needs. Avoid letting short-term market conditions influence your buying decision.
4. Not planning ahead
Once you have searched for thehouse that you want to buy, you need to ask your agent about the demand. Is the home getting many offers or has it been on the market for long? Do not hesitateto make a thorough inspection. If possible, hire the services of an inspector who has the expertise to check the plumbing, pipes, and even air conditioning.While it might sound like a little thing, it will ensure that you end up with a good house.
5. Spending beyond your budget
It’s obvious that every buyer is always looking for a home that fits within his or her budget. But remember there are some expensive properties that may look very much appealing. However,for you to avoid derailing your finances, avoid buying a home that is way beyond your budget. While it’s normal to want more than you can afford, do not be tempted. Remember, every bank always gives you a borrowing limit after an alyzing your ability. Spending more that you have can leave in financial difficulties including increased interest rates.
6. Buying house is not all about the price
It’s obvious that by buying aproperty you make money but this does not mean that you should go for cheap houses. Remember, after paying the price you always get value. You should,therefore, avoid making a decision based on the price of the home. Even if youbuy cheap property on the main road you wild forever be stuck with a cheapproperty. Once you have gotten a good property you need to make the best offer.Instead of basing your price on the seller’s price, analyze the market so as toknow the value of the houses. With this knowledge, you can make the best buying decision.
7. Not knowing the full cost of buying ahouse
Many buyers fail to know the full cost of buying a home. Apart from the acquisition costs, there are things such as rates, stampduties loan applications, valuation costs, and mortgage insurance. You alsoneed to prepare yourself for any eventuality once you move to your new home. Inshort, you need to budget for such things.