7 common First-Time Home Buyer Mistakes to Avoid

 So you are all set to buy your new home! You have consulted with your family, friends and searched online for the properties. But, is your decision fail-proof?

Honestly, the process of home buying is of course difficult to navigate but knowing about the twists and turns beforehand can help you in avoiding them.

When I was searching for a villas in Jaipur, it was hard for me to finalize the perfect abode too! Thus, it is useful to know about the common first time homebuyers mistakes so that you can tackle the issues in time.

Moreover, knowing about the situations that the inexperienced home buyers come across, will help you prepare in time for yours.

To make your work easier, I am sharing below some common issues that you must take into consideration while buying a property in Jaipur.

Let’s dive right in

Mistakes to avoid while buying a home

1. Not Defining the budget

Having high expectations and falling in love with a home that is out of your budget is not a very good start. Even before going for a house-hunt you should set a budget and stick to that budget until you have bought one.

Having unrealistic expectations, wanting a huge sized villa or wishing for a lavish penthouse when you don’t have a big-fat bank balance is not a good idea.

Generally, your monthly mortgage payments shouldn’t be much more than 28 percent of your monthly gross income. Thus, opt for the house which comes under your budget and you are able to pay off your home loans well in time.

2. Not calculating the additional costs

Apart from the basic selling cost, there are extra costs that come along with the BSP and ultimately leads to an increment of almost 25% in the total expenditure. Make sure that you add these additional costs too while calculating your budget.

The additional costs come in two ways. One is the cost that the developer/builder charges and the second is what the government levies in the form of taxes. 

Hence, in my opinion, it is wise to choose a developer/builder who chalks out the expenses for you along with the BSP rather than charging extra afterward!

3. Skipping the home inspection

Home inspection is not very commonly seen in every first-time home buyer’s checklist, but it is important to include home inspection in the list.

You can ask your developer or the current home owner to open up the property so that you can take a closer look at the same.

You can check the construction quality, the paints or cracks on the wall, some fittings and fixtures and ensure that the property you are buying is in a good shape.

4. Not inspecting the neighbourhood

Before closing in on a property it is vital to take a look at the neighbourhood as well. The neighbourhood comprises your nearby residential colonies, the nearby key centres like schools, hospitals etc. and the living conditions around your property.

While looking for a good property, make sure that you also take a look at the areas around your home. After all, a home that keeps you close to the city is better than a home that is far off from the city centre and cuts you off from the main area.

Also, having a good neighbourhood also affects your lifestyle. Thus, spend some time in studying the neighbourhood rather than jumping into finalizing the property.

5. Not correcting your credit score

Your credit score is an important financial marker thus before applying for a home loan, you must take care of your credit score. The better your credit score the lower is your mortgage interest and you will have a higher chance of securing a loan.

You should ensure that your credit score is maximized before attempting to buy property in Jaipur (if it comes with home loans.)

However, different types of home loans require different credit scores, a credit score above 740 is highly preferable. If you wish to check your credit score, you can do so by a FICO score calculator. Moreover, to improve your credit, you can get in touch with a CA or financial consultant who can work out some tactics to increase your digits.

6. Not exploring loan options

In India, there are primarily 5 different types of home loans available for the home buyers. Namely, the basic home loan, home construction loan, home extension/improvement loan, home loan balance transfer, CLSS (Credit-Linked Subsidy Scheme) under PMAY (Pradhan mantri awas yojna). 

These loans offer different types of benefits to all and require different types of documentation. Thus, make sure you explore all the options and categories you fall under before applying for any loan.

7. Not being aware of future perspectives

While going for property inspection, you should also take a look at the developments happening nearby. And when you think of investing/buying a property, you must be aware of how your property will perform in the upcoming years. 

Jaipur is on its way to become a hub of Luxury Real Estate, and in the coming years the Jaipur real estate market will witness a significant advancement in the upcoming years. This is why the builders and developers are now focussing on providing the posh living to all at the prime locations and making affordable, premium value homes. 

Now that you know the most common mistakes, I would like to end by saying that you can easily avoid them while looking for your favourite property. Or if you wish to avoid any hassles you can get in touch with some renowned builders to make your task a tad bit easier.

Good luck!