Feeling excited to buy your new home? It’s a big life decision! As a first-time home buyer, you may be suddenly overwhelmed by a lot of tasks and responsibilities which may leave you susceptible to some costly mistakes.
Here are some common mistakes to avoid when you are buying a new home
Choosing an inefficient real estate agent
When you are a new buyer you may not be knowing the pros and cons of real estate industry. Taking advantage of this fact, many real estate agents often may try to trick you into paying more than what the house is actually worth. It’s important to be cautious of such real estate agents and brokers. Always do your own research and choose brokers based on client feedback.
Neglecting the locality
In buying a new house, the location is highly important. Check out if the house is near your workplace, schools, hospitals, departmental stores & major highways. Many buyers often ignore these basic factors and end up getting stuck at an inconvenient location.
Not enough background research
Buying a property takes up a huge amount of your savings. It’s vital that you check the track record of the developer, the quality of past projects, completion date, client feedback, etc.
Not getting a loan pre-approval
Going house-hunting without even finding out if you are eligible to borrow enough money to buy the property you like is a common mistake you can avoid. In UAE a pre-approved mortgage will increase your chances of quickly closing the deal of the property.
Ignoring hidden costs
As a first-time buyer you should have a clear idea of the maintenance, home insurance & other costs associated with the property. Not budgeting these costs, will cost you high after moving into your new house.
Home loans comparison in advance
As a first-time buyer you may be planning to purchase properties with the backing of a bank loan, you may take the decision by either consulting close friends and family members on mortgage options or get easily influenced by the first lender you seek out. It’s highly important to carefully examine and compare different mortgage options before taking a final decision. Any decision taken without these comparisons can become a financial risk for you.
Stretching your budget
You may feel tempted to buy when you come across an expensive house that you fall in love with. Do not fall for such temptations as you will only end up overburdening yourself with a huge loan.
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